Dixie Dynamite Company

September 12, 2019/in Questions Uploads /by Hannah Wangui

Question

Dixie Dynamite Company is evaluating two methods of blowing up old buildings for commercial purposes over the next

five years. Method one (implosion) is relatively low in risk for this business and will carry a 11 percent discount rate. Method two (explosion) is less expensive to perform but more dangerous and will call for a higher discount rate of 15 percent. Either method will require an initial capital outlay of $90,000. The inflows from projected business over the next five years are shown next.

Years	Method 1	Method 2
1	$	31,600	$	22,800
2		36,800		24,800
3		45,000		34,300
4		36,000		32,400
5		22,200		71,700

Use Appendix B for an approximate answer but calculate your final answers using the formula and financial calculator methods.

a. Calculate net present value for Method 1 and Method 2.(Do not round intermediate calculations and round your answers to 2 decimal places.)

b. Which method should be selected using net present value analysis?

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Dime a Dozen Diamonds makes synthetic diamonds by treating carbon

September 12, 2019/in Questions Uploads /by Hannah Wangui

Question

Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $130. The

materials cost for a standard diamond is $80. The fixed costs incurred each year for factory upkeep and administrative expenses are $206,000. The machinery costs $1.2 million and is depreciated straight-line over 10 years to a salvage value of zero.

a. What is the accounting break-even level of sales in terms of number of diamonds sold? (Do not round intermediate calculations.)

Break-even sales diamonds per year

b. What is the NPV break-even level of diamonds sold per year assuming a tax rate of 40%, a 10-year project life, and a discount rate of 12%? (Do not round intermediate calculations. Round your answer to the nearest whole number.)

Break-even sales diamonds per year

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Here are the instructions to the assignment

September 12, 2019/in Questions Uploads /by Hannah Wangui

Question

Here are the instructions to the assignment: Show all work and if you use a financial calculator, show your

inputs,thank you.

Use what you have learned about the time value of money to analyze each of the following decisions.

Decision #1: Which set of Cash Flows is worth more now?

Assume that your grandmother wants to give you a generous gift. She wants you to choose which one of the following sets of cash flows you would like to receive:

Option A: Receive a one-time gift of $10,000 today.

Option B: Receive a $1600 gift each year for the next 10 years. The first $1600 would be received 1 year from today.

Option C: Receive a one-time gift of $20,000 10 years from today.

Compute the Present Value of each of these options if you expect the interest rate to be 4% annually for the next 10 years. Which of these options does financial theory suggest you should choose?

Option A would be worth $__________ today.

Option B would be worth $__________ today.

Option C would be worth $__________ today.

Financial theory supports choosing Option _______

Compute the Present Value of each of these options if you expect the interest rate to be 7% annually for the next 10 years. Which of these options does financial theory suggest you should choose?

Option A would be worth $__________ today.

Option B would be worth $__________ today.

Option C would be worth $__________ today.

Financial theory supports choosing Option _______

Compute the Present Value of each of these options if you expect to be able to earn 10% annually for the next 10 years. Which of these options does financial theory suggest you should choose?

Option A would be worth $__________ today.

Option B would be worth $__________ today.

Option C would be worth $__________ today.

Financial theory supports choosing Option _______

Decision #2 begins at the top of page 2!

Decision #2: Planning for Retirement

Tom and Tricia are 22, newly married, and ready to embark on the journey of life. They both plan to retire 45 years from today. Because their budget seems tight right now, they had been thinking that they would wait at least 10 years and then start investing $2400 per year to prepare for retirement. Tricia just told Tom, though, that she had heard that they would actually have more money the day they retire if they put $2400 per year away for the next 10 years—and then simply let that money sit for the next 35 years without any additional payments—than they would have if they waited 10 years to start investing for retirement and then made yearly payments for 35 years (as they originally planned to do).

Help Tom and Tricia make an informed decision.

Assume that all payments are made at the end of a year, and that the rate of return on all yearly investments will be 9% annually.

a) How much money will Tom and Tricia have in 45 years if they do nothing for the next 10 years, then put $2400 per year away for the remaining 35 years?

b) How much money will Tom and Tricia have in 10 years if they put $2400 per year away for the next 10 years?

b2) How much will the amount you just computed grow to if it remains invested for the remaining

35 years, but without any additional yearly deposits being made?

c) How much money will Tom and Tricia have in 45 years if they put $2400 per year away for each of the next 45 years?

d) How much money will Tom and Tricia have in 45 years if they put away $200 per MONTH at the end of each month for the next 45 years? (Remember to adjust the 9% annual rate to a Rate per month!) (Round this rate per month to 5 places past the decimal.)

example of rounding: .062134 = .06213 or 6.213%

e) If Tom and Tricia wait 25 years (after the kids are raised!) before they put anything away for retirement, how much will they have to put away at the end of each year for 20 years in order to have $1,200,000 saved up on the first day of their retirement 45 years from today?

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Persuasive Communication

September 12, 2019/in Questions Uploads /by Hannah Wangui

Question

I need help with a reply to this person’s post. It must be followed the 2-by-2 format by discussing at least 2

points liked/agreed with and why, as well as 2 points disagreed with (or 2 things I think the author of the thread could have added to improve his/her thread) and why. Required length of 200 (minimum) to 300 (maximum) words.* Thank you!

Kenneth Harvey

Question 1. Persuasive Communication

1. Discuss several types of persuasive communication you might be required to write or present in your professional and personal life.Persuasive Communication

All one must do is turn on the TV and within minutes that individual will be bombarding with persuasive communication. This type of communication is not limited to advertising. It is prevalent in both business and personal realms. Even children may not perceive the subtle sales pitch of a commercial, but they are masters of getting what they want. Lehman, DuFrene and Walker identify that, “persuasion need not be a hard sell; it can simply be a way of getting a client or your supervisor to say yes” (Lehman, DuFrene, & Walker, 2017, p. 129).

Persuasive communication is used and required in daily life. One might need to make a request to take vacation, get a raise or even apply for a new job. Some might need to submit a warranty claim while others may just need to ask for information or a special favor. Many have jobs that have elements of marketing or direct sales. All of these cases use influence to achieve action.

There are diverse forms of persuasive communication. Whether spoken or written, when applied effectively, it will follow the four basic steps that Sherwin Cody listed as, “gaining attention, generating interest, creating desire and motivating action” (Lehman, DuFrene, & Walker, 2017, p. 130). The request should both stir emotion and resonate logically, but it is worthless without a clear ask of the recipient. Wells and Spinks reinforce this thought, “The final part of a persuasive message should urge a specific action” (Wells & Spinks, 1996, p. 27).

It should be noted that Jesus commissioned His followers to carry the gospel message to all the world. The elements of persuasion should be studied to successfully deliver the good news. The Bible also sheds light on the fact that even a perfect proposition might not garner the desired yes. One of the saddest verses in the Bible concludes, “Then Agrippa said unto Paul, Almost thou persuadest me to be a Christian” (Acts 26:28, King James Version).

References

Wells, B., & Spinks, N. (1996). The good, the bad, the persuasive: Strategies for business messages. Corporate Communications: An International Journal, 1(3), 22-31. doi:10.1108/eb05959