Day: April 26, 2018

Hello,

I’m looking to flesh out some more inputs regarding the project I’m writing on (Impact of Uninsured and Unisured Population). I have Sharp Healthcare System in San Diego California as my case study. Im on Part 3 of my project. Can someone help me with the following criterias?

1.) Evaluate the overall risk to the organization if the rates of uninsured and underinsured continue to rise at 2-3% over the next five years. How is the risks being measured? (I guess, any not for profit hospital may be used as guideline).

2.) Give at least five key initiatives for building the organizational strength to meet these risks. The initiatives should detail the issue, the degree of risk, the internal and external environmental strengths and weaknesses, and your assessment of the ability of the organization to effectively respond to these risks. Factors that should be considered include the capacity of the organization to respond to change, the willingness of the leadership/ management to commit to organizational enhancement, and the barriers to organizational effectiveness.

I’m having a hard time setting up an Excel solver model for the problem below:
Owens-Wheat uses two production lines to produce three types of fiberglass mats. The demand requirements for each type of mat (in tons) for the next four months are as follows:

Month Mat Type
1 2 3
1 200 300 400
2 300 100 300
3 200 400 200
4 300 200 100

If it were dedicated to simply producing a mat of a single type, a single line 1 machine could produce either 20 tons of a type 1 mat or 30 tons of a type 2 mat. Similarly, a single line 2 machine could produce either 25 tons of type 2 mat or 28 tons of type 3 mat. Note that mat type 1 cannot be produced on line2, while mat type 3 cannot be produced on line 1. If costs $ 5,000 per month to operate a single machine on line 1, and $ 5,500 to operate a single machine on line 2. A cost of $ 2,000 is incurred each time a new machine is purchased for either line, while a cost of $ 1,000 is incurred when a machine is retired from service. At the end of each month, Owens would like a minimum inventory of 50 tons of each mat type and the cost of holding one ton on inventory for a month of any mat type is $ 5. At the beginning of month 1, the company has 5 line 1 machines, and 8 line 2 machines. Determine a minimum cost production schedule for each mat type of each production line.

Please work the following problem on an EXCEL spreadsheet. An elegant solution is not required, Just provide all the steps so I will understand the concept and be able to replicate it for similar problems. Also, provide a written description leading me through the solution.

PROBLEM:

A Company must make decisions on weekly production. The Company makes two products; Patio bars and barstools. Each bar contributes $20 and each barstool contributes $8 toward profit. The Company can sell all the products it makes but market demand requires that they must make at least two barstools for each bar that they produce.

There are constraints on production. The Company will have available only 24,000 units of raw materials, 12,000 labor hours, and $20,000 for supplies. Each bar requires 6 units of raw materials, 2 hours of labor, and $3 in supplies. Each barstool requires 3 units of raw material, 4 hours of labor, $3 in supplies. According to the union contract, the Company must produce 4,000 items each week.

The Company plans to maximize profit contribution for the weekly production. How many bars and how many barstools should the Company produce each week?

Scenario for Assignments 1-5 For Assignments 1-5, you are the new budgeting and finance administrator for your local government agency. Your first responsibility is to become familiar with the agency, the budget, programs, and capital projects. As the administrator, you will be responsible for analyzing, examining, proposing, and preparing the agency’s budget for the next five (5) years. Assignment 2: The Capital Budget Refer the Scenario for Assignments 1–5. Forecast salaries, revenue estimating, and prepare the capital budget. Using the budget from the selected agency (PA Department of Corrections), write a six to seven (6-7) page paper in which you: Analyze the agency’s compensation for employees. Provide a rationale on what the costs and benefits would be for a 2 percent, 4 percent, or 5 percent pay increase for the fiscal year 2014. In your forecast, discuss the effects of the increase on benefits for the agency. (Title this section Payroll Forecast.) Review the trend of the agency over the past five (5) years and prepare an analysis explaining the trend for expenditures. (Title this section Trend Analysis.) Prepare and explain a five (5) year forecast of the four (4) highest expenditures. Include in the analysis whether the costs should be approved or not approved. Justify the reasoning with examples. (Title this section Expenditure Forecast.) Compare two (2) options for predicting the cost of needed repairs to the current building that houses the selected agency. Provide a rationale for recommending one (1) of the two (2) options. Include the figures to support the rationale. (Title this section Capital Budget.) Provide names and URLs of the Websites for the state’s budget(s) analyzed and any other government Websites used to support the assignment’s criteria.

Before there was Paris Hilton, there was Consuelo Vanderbilt Balsan – a Gilded Age heiress and socialite, re-nowned for her beauty and wealth. Now Ms. Balsan’s onetime Hamptons home is slated to hit the market priced at $28 million with Tim Davis of the Corcoran Group.

Located on Ox Pasture Road in Southampton, the shingle-style home was built around 1900 and is known as “Gardenside” or “Cara-Mia”. Ms. Balsan, the great-granddaughter of railroad magnate Cornelius Vanderbilt, owned the house until her death in 1964.

According to public records, the estate is owned by Robert G. Goldstein, executive vice president and president of global gaming operations at Las Vegas Sands Corp, and his wife Sheryl, who purchased the house in 2007 for $17.4 million.” (The Wall Street Journal, August 1, 2014, M2)

1. Calculate the annual compound growth rate of the house price during the period when the house was owned by Robert G. Goldstein (since 2007). (Round the number of years to the whole number).
2. Assume that the growth rate you calculated in question #1 remains the same for the next 20 years. Calculate the price of the house in 20 years.
3. Assume the growth rate that you calculated in #1 prevailed since 1900. Calculate the price of the house in 1900.
4. Assume the growth rate that you calculated in #1 prevailed since 1900. Which price was paid for the house in 1964?
5. You were using the time value of money concept to answer the question #3. What is the time point 0 is this problem?

Net Present Value Practice True false questions

1. The three common discounted cash flow methods are net present value, internal rate of return, and payback.

2. The net present value (NPV) method calculates the return on investment from a project by discounting all expected future cash inflows and outflows back to the present point in time using average cost of capital.

3. Internal rate of return is a method of calculating the expected gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time.

4. A capital budgeting project is accepted if the required rate of return equals or exceeds the internal rate of return.

5. The net present value method can be used in situations where the required rate of return varies over the life of the project.

6. The net present value method accurately assumes that project cash flows can only be reinvested at the discount rate used.

Question 1:
On 1 January 2012, Rose Tremayne opens a bank account in the name of her new trading business, Rose Tremayne Trading (RTT). She puts £112,000 of her own money into the business bank account. The following is a summary of transactions during 2012:
(1) RTT takes out a short-term bank loan of £45,000 cash.
(2) RTT buys non-current assets at the start of January at a cost of £72,000 paying cash.
(3) Buys inventory of £60,000, paying cash.
(4) Inventory costing £48,000 is sold on credit for £72,000.
(5) Purchases inventory on credit for £84,000.
(6) Inventory costing £6,000 is sold for £9,000 cash.
(7) RTT purchases a 12 month insurance policy on April 1 for £4,000 providing cover until March 31 2013.
(8) RTT purchases two lots of land for £60,000 (ie £30,000 per lot). The purchase price of £60,000 is paid after RTT takes out a ten year loan of £34,000.
(9) Sells one of the lots of land for £33,000 cash.
(10) RTT pays rent of £15,000 for the first nine months of 2012 but owes rent of £5,000 on 31 December 2012.
(11) Inventory costing £69 000 is sold for £103,000 cash.
(12) Wages for the period amounting to £30,000 are paid in full.
(13) RTT pays off £15,000 of its short term bank loan.
(14) RTT pays total interest of £4,000 for the long-term bank loan for 2012.
(15) Customers pay £30,000 of cash owing.
(16) RTT pays its trade creditors £48,000.
(17) The equipment purchased for £72,000 at the start of January has an expected useful life of four years and an expected scrap value of zero. Assume straight-line depreciation is to be charged on these assets.

Instructions:
(a) Prepare a balance sheet for RTT as at 31st December 2012.

(b) Prepare an income statement for RTT for 2012 and briefly comment on RTT’s performance during 2012.

(c) Prepare a cash flow statement for RTT for 2012.

A stock is expected to pay a dividend of $2 per share in one month and in four months. The stock price is $40 and the risk-free rate of interest is 6% per annum with continuous compounding for all maturities. An investor has just taken a short position in a five-month forward contract on the stock.
What are the forward price and the initial value of the forward contract?
Three months later, the price of the stock is $48 and the risk-free rate of interest is still 6% per annum. What are the forward price and the value of the short position in the forward contract?
Make sure that you show or explain all calculations. Make sure you answer all questions above.

Suppose the current spot price for gold is $800 per ounce. The risk-free interest rate available to all investors for borrowing or lending is 0.50% per month (monthly compounding). Forward contracts are available to buy or sell gold for delivery in 1 year; the forward price for gold is $890 per ounce. You have a large inventory of gold.
Assume that storage costs for gold are zero. Is there an arbitrage opportunity? If you answer “YES,” then show step by step how you would make a profit and calculate the profit per ounce of gold. If you answer “NO,” then show why there is no arbitrage opportunity.

Now assume that the present value of the storage cost for gold is $100 per ounce for one year of storage. Is there an arbitrage opportunity? If you answer “YES,” then show step by step how you would make a profit and calculate the profit per ounce of gold. If you answer “NO,” then show why there is no arbitrage opportunity.
Make sure that you show or explain all calculations. Make sure you answer all questions above.

Your salary for the coming year is $100,000 (payable one year from now) and you expect to work for another 30 years. You expect your annual base salary to grow at a 4% annual rate during the remainder of your career. Your company’s pension plan calls for you to receive a yearly pension payment after you retire equal to 25% of your final year’s base salary. The first payment will be made one year after your retirement, and you expect to live for twenty years after your retirement. The interest rate is 8% per year.
a) What is the amount of the yearly pension payment that you can expect to receive under this plan (assume that you will receive your $100,000 base salary payment one year from now)?
b) Now suppose you are contemplating a switch to a new employer. The new employer will match your annual base salary, and you can expect this to grow at a 4% annual rate until your retirement. However, the new employer offers no pension plan. The new employer offers to pay you a flat annual bonus, on top of your base salary, to compensate you for the loss of the pension plan. How much of an annual bonus would you require before you were just willing to make the switch?

11. A man makes a simple discount note with a face value of $2300, a term of 160 days, and a 18% discount rate. Find the discount. (Use the banker’s rule)

12. A man has a simple discount note for $6600, at an ordinary bank discount rate of 8.72%, for 40 days. What is the effective interest rate? Round to the nearest 10th of a percent. (Use banker’s rule)

13. A man holds a note of $5000 that has an interest rate of 13% annually. The note was made on March 16 and is due November 14. He sells the note to a bank on June 12 at a discount rate of 12% annually. Find the proceeds on the third-party discount note. (Use the bankers rule)

16. Tom Bond borrowed $6200 at 5 ½% for three years compounded annually. What is the compound amount of the loan and how much interest will he pay on the loan?

22. Compute the amount of money to be set aside today to ensure a future value of $4300 in one year if the interest rate is 8.5% annually, compounded annually.

23. Ronnie Cox has just inherited $27,000. How much of this money should be set aside today to have $17,000 to pay cash for a Ventura Van, which he plans to purchase in one year? He can invest at 1.7% annually, compounded annually.