ECO 500 Excel Assignment Two
Your company asked you to evaluate two potential projects. These projects are active for 10 years and have no salvage life. Both have the same upfront costs, but the revenue stream
from each of the projects is subject to varia
Think of a strategy pursued by the company your work for, another company, or even a sports team. How
can game theory help improve the outcomes for the decision makers? Explain whether simultaneousmove, repeated-move, or sequential-move games are most app
Explore how a firm determines the optimal scale of a plant for a given rate of output and why this
determination relates to longer-run strategies versus current operations. Also, discuss the differences
between economies of scale and economies of scope an
Question 1: FX Movement
Theresa Nunn is planning a 30-day vacation on Pulau Penang, Malaysia, one year from now. The present charge for a luxury suite plus meals in Malaysian ringgit (RM) is
RM1,045/day. The Malaysian ringgit presently trades at RM3.1350/
Emerging markets exist amongst many different regions and cultures creating a
challenge for companies to identify appropriate products, marketing and entry strategies
necessary to be competitive. Based on The Economist magazines identification of countrie
1. If the cutoff score for extending credit is a score of 100 points, should the applicant
receive credit? Why or why not?
Credit History of Business
Available Liquid Assets of Business
Evaluate 4.1: Supplier Management
This paper will evaluate the supply chain process and management guidelines
employed by Boeing Company that enable the company to reduce inventories; maintain
quality, regulatory compliance, and competiv
The United States has long been considered a dominant economic region with
significant financial capability, political stability and favorable demographics. As the U.S.
economy is slowly recovering from an economic recession, Latin America is experiencing
14.1 CD: Nominal yield: 6%; Muni: 4.25%; Tax Rate: 39%
Taxable equivalent yield = Nominal yield / (1-T)
Taxable equivalent yield = 4.25% / (1 39%) = 6.97%
The treasurer should select the Muni because in order to obtain equivalent after taxes
the company w
T-bills are short-term debt obligations issued by the US Government and sold
at a discount from par value. T-bills have maturities ranging from one month to one
year and are exempt from state and local taxes, the investor does not receive interest
In the lecture a calculation is provided determining the effective rate of commercial
paper given the following conditions.
Funds needed: $2 million
Note rate on CP issue: 5.5%
Dealer fee: 0.25%
Line-of-credit commitment fee: 0.375%
Maturity of CP issue:
Q2: Inventory is a difficult item to manage because of the number of company
departments that have responsibility for moving inventory. Purchasing is responsible
for maintaining supplies of raw materials and avoiding shortages, production is
Its been said that in business cash is king and while cash certainly does contribute
to a companys financial well being, I would argue that inventory is the companys lifeline.
Inventory consists of the raw materials required for production, the semi-finis
a. Analog Devices, which develops specialized applications for analog semiconductors, has
invested countercyclically to cash in on business upturns. The results: 80% faster growth and
50% higher profitability than the rest of the semiconduc
Review the modified Black-Scholes option pricing model (also known as Garman-Kohlhagen-Black-Scholes
model) and discuss the relationships between these variables and the option value.
The modified Black-Scholes option pricing model is widely used for eval
Briefly explain how exchange rate regimes evolved from the gold standard system to the current eclectic
system where exchange rate regimes fall into a spectrum ranging from fixed exchange rates to freely floating
exchange rates. In your explanation, ident
Find an article about a current event that discusses a change in the supply or demand of a product. For
example, has there been a weather event that has affected certain food crops or the availability of
energy? Has a new consumer product been introduced?
Decision theory is used in many business disciplines including economics, psychology and
engineering. In the article I chose decision theory was discussed in the context of maintenance
engineering. Maintenance engineering is the processes and designs nece
Question 1: FX Quotes
Answer the following questions based on the exchange rates quotes below:
a. You have EUR 1,000,000, and you want to exchange it into USD. How many USD will you get?
You have (EUR)
You will get (USD) = Initial Value * bi
Amber McClain, the currency speculator sells 8 June futures contracts for 500,000 pesos at the closing price of $0.10773/Ps?
a. What is the value of her position at maturity if the ending spot rate is $0.12000/Ps?
b. What is the value of her p
Select a product and discuss factors that affect its price, income, and cross elasticity of demand.
For example, if you select table salt, you could argue that since its price is low relative to income and it is
generally considered a necessity, it has ve
Discuss how certain features (characteristics) of bonds affect their risk and hence return. Also discuss the
usefulness and limitations of bonds ratings. How would these factors change your investment strategy
when looking at bonds?
Bonds offer investors
Under quality process improvement tools and techniques, click on the link for tools and techniques for
process evaluation and improvement. Review all of the tools and techniques. Select one tool or technique
and discuss how you would use it to analyze and
The Callaway Golf Company experienced an increase in current assets and current
liabilities from 2009 to 2010 and then in 2011 experienced a reduction in current assets and
current liabilities. As a result of the increase in current liabilities from 2009
Globalization in business has resulted in organizations changing their processes, marketing,
suppliers and facilities in order to remain competitive and reach consumers within the global
economy. Participating in a global market may allow companies to ben
Explore and describe two different enterprise application software packages. In a post that you
title 5.2: Enterprise, describe the influence that an enterprise application has on a business plan.
Explain the role that the position you described in your 1
When evaluating a potential project it is important to determine the present value
which provides the current worth on a future sum of money based upon a specified rate of
return. Present value of a future cash flow is calculated using the following equat
International labor standards originated in the early 19th century in the main European
countries of England, Belgium and France but were mostly regional proposals to promote
systematic adoption (Actrav). It was not until 1919 when the International Labor