Author: Anonymous

    The Atlantic Company plans to open a new branch office in a suburban area. Equipment 1 will cost $200,000 and will be depreciated (on a straight-line basis) over a 20-year life to a $0 estimated salvage value. Equipment 2 for the building will cost an additional $100,000. This equipment has a 20-year life and will be depreciated on a straight-line basis to a $0 estimated salvage value. The branch office is expected to generate additional before tax net income of $30,000 per year before depreciation. The tax rate is 40 percent and the cost of capital is 12 percent. Compute the net present value for the project.

     A risky $500,000 investment is expected to generate the following cash flows:             Year      1           2                    3                         $250,000   $266,667   $285,715. The probability of receiving each cash inflow is 80, 75, and 70 percent, respectively.  If the firm’s cost of capital is 10 percent, and the risk-free rate is 8% should the investment be made based on the NPV certainty equivalent approach?

The weights of cost of capital formula are based on

.  CapCo has a capital structure that is composed of $10 million of debt and $30 million of common equity. If CapCo is in the 30% marginal tax rate, what is its weighted average cost of capital if the yield to investors on CapCo debt is 6% and the cost of CapCo common equity is 14%?

Y       You are considering the purchase of a business that produces net cash flows of $350,000 per year in  perpetuity. In a perfectly competitive market, what should be the value of the business if the firm’s cost of capital is 12%?  

A company is considering two new battery factories for electric vehicles one in St Louis Missouri the other in Austin Texas. The company will build only one factory. These projects are said to be:

Consider a simple data warehouse for a retail business which consists of the following tables (appropriately named to indicate fact and dimension tables):FactSalesDimDateDimProductDimStoreThe aim of the data warehouse is to assist in analyzing various metrics of sales such as quantity sold, total sales amount, profit, etc.Question:Given the FactSales table and its related dimension tables, which of the following statements are true? (One or more choices are correct)

Consider a table called Employees with the following columns:EmployeeID (Primary Key)FirstNameLastNameDepartmentSalaryQuestion:Given the Employees table information above, with a clustered index on EmployeeID, which of the following statements are true? (One or more choices are correct)

Example of a hierarchy data is shown below.A1 ├── B2 │ ├── D3 │ └── E3 └── C2 ├── F3 └── G3Question:Which of the following statements is accurate in describing the hierarchy? (One or more choice is correct)

DISCUSSION POINTSDetermine how public policy scholars should incorporate causal explanation and quantitative measurement into their analyses.Assess the value of quantitative data (and its value in combination with risk analysis) to public policy researchers.