Chapter 17

1.      A firm has the opportunity to invest in a project having an initial outlay of $20,000. Net cash inflows (before depreciation and taxes) are expected to be $ 5,000 per year for five years. The firm uses the straight-line depreciation method with a zero salvage value and has a (marginal) income tax rate of 40 percent. The firms cost of capital is 12 percent

a.       Compute the internal rate of return and the net present value

b.      Should the firm accept or reject the project?

     5. The Charlotte Bobcats, a professional basketball team, has been offered the opportunity to purchase the contract of an aging superstar basketball player from an-other team. The general manager of the Bobcats wants to analyze the offer as a capital budgeting problem. The Bobcats would have to pay the other team $800,000 to obtain the superstar. Being somewhat old, the basketball player is expected to be able to play for only four more years. The general manager figures that attendance and hence revenues, would increase substantially if the Bobcats obtained the superstar. He estimates that incremental returns (additional ticket revenues less the superstar’s salary) would be as follows over the four year period

                  Year                              Incremental Returns

1                                                                    $450,000

2                                                                    350,000

3                                                                    275,000

4                                                                    200,000

 The general manager has been told by the owners of the team that any capital expenditures must yield at least 12 percent after taxes. The firms (marginal) in-come tax rate is 40 percent. Furthermore, a check of the tax regulation indicates that the team can depreciate the $800,000 initial expenditure over the four year period

a.       Calculate the internal rate of return and the net present value to determine the desirability of this investment

b.      Should the Bobcats sign the superstar?

9. The State of Glottamorans has $100 million remaining in its budget for the current year. One alternative is to give Glottamorans a one –time tax rebate. Alternatively two proposals have been made for state expenditures of these funds.

The first proposed project is to invest in a new power plant, costing $100 million and having an expected useful life of 20 years. Projected benefits accruing from this project are as follows

           Years                                        Benefits Per Year (Millions)

       1-5                                                $0

      6-20                                          20

 

The second alternative is to undertake a job retraining program, also costing $100 million and generating the following benefits

      Years                                                Benefits Per Year (Millions)

        1-5                                                       $20

        6-10                                                      14

       11-20                                                     4

The State Power Department argues that a 5 percent discount factor should be used in evaluating the projects, because that is the government’s borrowing rate. The human Resources Department suggests using a 12 percent rate, because that more nearly equals society true opportunity rate.

a.       What is implied by the various departments desires to use different discount rates?

b.      Evaluate the projects using both the 5 percent and the 12 percent rates

c.       What rate do you believe to be more appropriate?

 

 

Take this short questionnaire (link below).

http://www.nwlink.com/~donclark/leader/matrix.html

Based upon the questionnaire results write a paragraph on your proclivity at Planning, Organizing, Leading, or Controlling (POLC). You may also comment on which of the four you think would be the most difficult. Try to support your conclusion with information from a job in a retail sales enviroment.

 

1.What is a peer tp peer network? What is a client server network? 2.What is the difference between an internet and an intranet? 3.What is protocol? 4.What is a user agent? What are examples? What is a server? How do they interact? 5.What is microsoft outlook used for? 6.What is a browser? What are some examples? 7.What is a “hotspot” on webpage? How do you know you are over a hot spot? 8.How do you change the “home page” 9.How do you delete the web pages you have visited?

The human body is truly remarkable and is designed to function effectively. Organs are important structures composed of different tissues that facilitate specific functions within the body. Organs function as part of an integrated group of structures known as organ systems. These organ systems form the organizational units that are responsible for crucial processes necessary for sustaining life.

 

Examples of organ systems include but are not limited to the cardiovascular system, the digestive system, the musculoskeletal system, the nervous system, the excretory system, the endocrine system and the respiratory system. Even organ systems do not function alone. These systems work together, interacting with other organs in a functional network that keeps the body in balance. (Look up the term homeostasis in your text.) When homeostasis or the normal functioning of organ systems is disrupted, disease may develop causing injury to the body, or even death. In this assignment, you will explore organ systems, as well as associated diseases or malfunctions.

Take a look at the following case studies that detail an outcome associated with a disease/organ malfunction.

Critically evaluate the information provided and correlate it with the organ systems that are affected in the scenario. Use the information that you have gathered to answer the assignment questions that follow the case study. For assistance with your assignment, please use your text, the AIU Library, Web resources, and course materials.

 

Case Study

Cigarette smoking remains the leading preventable cause of death in the United States, causing an estimated 438,000 deaths – or about 1 out of every 5 – each year (National Cancer Institute, 2008).

Mr. Amos is now 57 years old and has been smoking for the past 30 years of his life. A recent doctor’s visit reveals that Mr. Amos has stage 3 lung cancer, characterized by his symptoms of nagging chest pain, fatigue, coughing up blood, substantial weight loss, and increased carbon dioxide levels in his blood. The doctor informed Mr. Amos that had he quit his smoking habit several years ago, he would have reduced his risk for developing lung cancer later in life. Mr. Amos immediately begins treatment for the lung cancer that has metastasized to his lymph nodes.

Answer the following assignment questions:

1. What main components in cigarettes affect the respiratory system? Explain their effects on specific organs, cells and/or processes in the respiratory system.
2. There are alternate mechanisms of transporting carbon dioxide (CO2) and oxygen (O2 ) in the blood. Explain how smoking might lead to increased levels of carbon dioxide in the blood.
3. Can smoking affect other organ systems of the body? Give specific examples and briefly explain your answer.
4. How can you correlate cellular respiration with the respiratory system?
5. Does smokeless tobacco present a reduced risk for lung cancer and other smoking associated diseases? Provide evidence for your answer.

Deliverable length 2-3 pages