answer

watching

views

20 Mar 2019

A firm is considering the purchase of a software analysis package that costs $450,000. Annual licensing fees are $25,000 (payable at the beginning of each year, starting in Year 1). The firm is bidding on a large 4-year government project where the new software will be used. If the firm uses an interest rate of 20%, what value for software costs should be put in the bid?

a) $514,725

b) $527, 650

c) $1,067,540

d) $1,094,346

Please show work!

answer

watching

118

views

For unlimited access to Homework Help, a Homework+ subscription is required.

You have 0 free answers left.
Get unlimited access to 3.8 million step-by-step answers.

Get unlimited access

Already have an account? Log in

Trinidad TremblayLv2

22 Mar 2019

Unlock all answers

Get 1 free homework help answer.

Already have an account? Log in

Related questions

The city of Annapolis, Maryland is considering turning a subway station to a high-speed rail station in an initiative called “Rails to Monorails”. This railway would be called the Annapolis Purple Line. Although the railway will connect Annapolis to surrounding areas, the project will be funded by the city of Annapolis. You have been asked to calculate the expected expenses to the city government if the rail is built. In addition, you are to calculate the projected economic costs of this project, which will be used for a cost-benefit analysis of the proposal. The accounting domain for the cost-benefit analysis will be the state of Maryland. No taxes would be owed on purchases, except where noted below. This rail would extend a total of 100 miles, running from Annapolis to neighboring cities in the area. Although most of the old subway rail has been removed, there is still some cleanup work to be done on the subway line in order for it to be suitable for putting down monorail tracks. This work will require rental of machinery from one of a number of local rental shops, at a cost $10 per linear foot of subway rail. Because the subway station will be refashioned into a new monorail station, a lot of the necessities are already included, such as bathrooms, etc. Also, the monorail train itself was already procured previously as Annapolis has built other monorail stations previously and has extra train cars available. The rail line would, however, need to have track laid. The current cost for track rails is $50 per linear foot. However, due to the large amount of railing needed for the project, it is projected that the price would increase to $56 per linear foot, and that the city would have to pay this higher price. Signs R Us, one of a number of local firms selling electronic displays in the area, will supply and install 100 digital displays at the Purple Line train stops. Each will cost the city $330. New subway turnstiles will be special ordered from Maryland Industrial, a local firm. The total bill for these items is projected to be $50,345 per stop along the Purple Line, which is a markup of $5,490 above costs. The Purple Line has 5 stops along the way. There will be a number of other features included in several locations along the Purple Line. These include: Benches - 30 per stop (ordered from an out of state vendor at a cost of $80 each, which is $24 above their costs) Updated restroom equipment - will be donated to the city by Johnson Capital (a local firm), which raised $70,000 for this purpose and will order the equipment from an out of state vendor. LED lights - 100 (special ordered from Annapolis Hardware at a cost of $365 each, which is $23 above their cost) Trash receptacles - 30 (purchased off the shelf from Annapolis Hardware at a cost of $250 each) Finally, local construction workers will be hired to work on the project, and it is expected that 45,000 hours of labor will be needed for this project. For these workers, the gross wage is $16.00/hr, but $1.50 of that amount is withheld for federal income and payroll taxes, and $.40 is withheld for state and county income taxes.

Calculate Expenses (Include a short, general description on how expenses were calculated, and give an example for one of the input items)

Calculate Economic Costs (For each input, describe the method you used to calculate the economic (opportunity) cost. If an adjustment to the expense was necessary to calculate the opportunity cost, explain why. If no adjustment to the expense was necessary, explain why not.)

coppercicada291


(Please Summerize the work down below, thank you)

Political	Economic
Growing political influences on healthcare advances	Cost of living increases
Global government influence on healthcare cost	Cost of insurance prices
Government control of Medicaid, Medicare funding	Rise of forecasted interest rates
Social/Cultural	Technical or Technology
Increase average age of population	Demand on new medical treatments
Patient expectations increase	Customize treatments
Demographics are in constant change	More advance service facilities
Environmental	Legal
Growing need for green business	Constant change of government drug Regulations
Environmental agenda and community awareness	Consumer laws
	Health and safety regulations



Porters 5 forces of business model

Competitive Rivalry
Growth opportunity for healthcare companies are expected to growing the next few years
Increase in new revolutionary drugs both in and outside of the US

Threat if New Entrants
Strict government regulations
Difficult to keep up due to constant change
Huge startup cost

Substitute Products
Threat of other substituting product and service at lower cost



Bargaining Power of Customers
Generic drugs offered at large discount to consumer
Larger less customized healthcare facility with lower housing costs
Several facilities offering similar services.

Bargaining power of supplier
Medical suppliers have a large pricing power
Bargaining power of physicians and nurses is huge because of large hospital benefits

Swot Analysis

Strengths

Highly trained and capable employees

Market experience

Strong leadership

High level of organizational efficiency

Excellent facilities

Strong commitment to bettering the community

Weaknesses

Increased cost of healthcare could lower our clientele

Limited staff resources

Limited cash flow to hire and train new employees

Lack of resources

Opportunities

Fast growing technology opens new doors for using state of the art equipment to better serve the patients.

Nursing and residential care is one of the fastest growing industries

Aging population

Threats

Uncertainty in political and economic climate causes hesitation for receiving new patients.

Funding constraints

Highly competitive market

Product or Service Analysis

Our services will be used by patients who cannot afford experimental treatments and patients who have been abandoned by the system because hospitals can no longer provide medical assistance. At our facility, we will be able to work with the families and provide them with different payments options, such as low monthly payment plans. Our main goal is to be able to treat the patient at a very affordable cost; however, if any patient does not possess the means to pay for treatment, he or she would not be turned away; our facility will tap into government and private funding to cover treatment cost.

The beauty of this service is that there isnât a charge of any kind to take part in our program because it is completely funded by government grants. Individuals that would take part would more than likely not have the means to pay a monthly deductible. Due to the nature of the business listed as a non-profit agency, there is no way to make a profit of any kind, as it would jeopardize the business in its entirety.

Some of the market factors that create a demand for our services include the need of medical care after having maximized all resources, the number of low income families, and the number of patients facing health issues needed extended medical care.

Opportunities that may derive from this business is the opportunity to expand and open multiple facilities, while extending a helping hand to many more in need. The risk, however, is the unstable funds deriving from grants. This can pose a huge treat to the business, as grants often times come and go and cannot be counted on as a constant income.

After studying the healthcare system and current policies in place, data shows many individuals facing severe health issues usually go untreated and uncared for due to the outrageous cost of medical care. It is devastating to see how often people, especially the elderly, are sent home and forgotten for the mere reason that hospitals and doctors are not willing to care for patients without financial means. In fact, in 2009 Harvard news reported 45,000 annual deaths due to lack of health coverage in the U.S. alone, which is significantly higher than the 18,000 reported by USA Today in 2002.

Financial Analysis

Clermont will be a nonprofit organization, dedicated to help the most needed. To open the facility fully operational we must take in consideration some fixed expenses like the land acquisition, permits, interest, brokers, administration fees, professionals (facility setup), staff, reports (environmental, occupational, fire, FDA), electricity, water, phone, water & sewer , connections, taxes, insurance, management, security, advertising, accountants, food, lawn mowers, bank fees, etc.

The facility will need have a total value of approximately three million dollars, but if we break the price of the land acquisition in to a thirty (30) year mortgage we can star up the business with an investment of approximately $ 233,944.61 USD to cover the first month of operation including all the startup permits and connections. After the first month the fixed expenses will be $184,444.00 USD with the exception of the months were taxes are due; taxes are around $ 43,000.00 USD paid quarterly will increase the tax month (depending on the facility fiscal year) for $ 10,750.00 USD approximately. We will fund all the costs with private and public funding, fundraiser, events, raffles, and most important with the help of the community.

As we mentioned before, Clermont is a nonprofit organization and we will do everything in our power to give the relief to the families in need. No one will be rejected because they do not have the money or the insurance cannot help. No money will be required from patient and every single dollar received will be spent in the patients, and in improving our facility and our service every day.

We believe our financial even breaking point will be a year after we begin operations, and be profitable soon after. There are many patients in need, and with the government and public grants each person will receive the treatment they need, and we will become the hope of many.

Please read the article below and answer the following question, use economic analysis to answer the question. In your answer, ensure that you use relevant economic theories, concepts, and/or diagrams.

d) What can we as private individuals do to address these concerns in the absence of government intervention? Are such private solutions likely to be effective?

The Australian dairy farming industry is in a state of crisis. Cheap dairy products and fluctuations in both the domestic and global markets have taken a financial toll on farmers. Consumers have rallied to help struggling dairy producers. But this is only half the problem. The true cost of dairy is also paid by dairy cows and the environment.

Welfare problems:

Despite the idyllic image of outdoor farming, several industry practices negatively affect dairy cows. To meet production demands, dairy cows are subject to a continuous cycle of impregnation, induced calving, and milking. Tail-docking and horn removal are routinely performed without pain relief. Lameness is another major animal welfare problem, often the result of environmental pressures, such as tracks, herd size, and handling. The average lifespan of a dairy cow is six to seven years, whereas generally, cows can live for 20 to 25 years. One of the most controversial issues is young bobby calves. A bobby calf is a newborn calf, less than 30 days old, who has been purposely separated from its mother. Immediately after separation, the cow and calf call out and search for each other. Most bobby calves are slaughtered within the first week of their life. Handling and transport pose added problems for young calves who have not developed herding behaviors, are vulnerable to stress, and are forced to go without their mother's milk. Each year, 450,000 bobby calves are slaughtered. Dairy farmers are being milked dry, but let's remember the real cost of milk May 25, 2016, 6.11 am AEST The dairy industry faces a number of welfare and environmental issues. Cow image from www.shutterstock.com Advocacy groups frequently uncover the routine abuse of bobby calves in Australian abattoirs and challenge the dairy industry to do something about it. Yet aside from the wider ethical questions over the use and exploitation of animals, farmers are not legally doing anything wrong. This is because the treatment of animals operates in a legal context where animals are considered absolute property. What's more, farm animals are exempt from the provisions of anti-cruelty legislation. Codes of practice are practically useless because they promote low welfare standards and are unenforceable.

The environmental impact:

As well as systematic welfare problems, livestock farming is, both directly and indirectly, one of the most ecologically harmful human activities. The Australian livestock sector is worth A$17 billion and dairy cattle farming is a A$4.2 billion industry. In Australia, livestock farming accounts for 10% to 16% of greenhouse gas emissions, with dairy farms contributing 19% of this or 3% of total emissions. Methane emissions, from digestion and manure, and nitrous oxide from livestock are significant contributors. Globally, the livestock sector is responsible for more greenhouse gases than the world's transport. Livestock production accounts for 70% of all agricultural land, including the land used to grow crops to feed these animals. Animal agriculture is a key factor in land degradation, deforestation, water stress, pollution, and loss of biodiversity. Livestock farming will also be affected by climate change, particularly changes in temperature and water. The quantity and quality of pasture and forage crops will also be affected. Diseases may increase due to fluctuating weather and climate.

Emissions can be reduced:

Just as the energy sector is attempting to transition to low-carbon energy sources to tackle climate change, the agricultural sector needs to transition to an ethical and sustainable alternative. From the current crisis, there are several opportunities for farmers to seize. Large transitions are possible in land use, production, output, and profitability. Places such as Gippsland in Victoria, which currently produces 19% of Australia's dairy, have the opportunity for agricultural development based on apples and brassicas, such as broccoli, kale, cauliflower, cabbage, turnip, and mustard. Some of these crops are already popular in the region. As a result of climate change and increasing temperatures, some areas will be more suitable than others. While still in the stages of research, perennial grain crops that store more carbon, maintain better soil and water quality, and manage nutrients better than annuals have the potential to contribute to sustainable agriculture. New land uses could also include carbon plantings, biofuels, and bioenergy crops. Investing in further research for alternatives to livestock farming is needed. Some have argued that livestock emissions can be technically mitigated by modifying animal feed, better managing pastures, carbon sequestration, and manure storage.

Welfare issues remain:

But technical mitigation does not address the endemic animal welfare problems in the livestock industry. Consumer demand is one of the most powerful strategies to combat animal welfare and environmental problems. Research shows that we must reduce food waste and losses in the supply chain and change our diets toward less resource-intensive diets, such as plant-based diets. Doing so would cut emissions by two-thirds and save lives. It's possible to eliminate animal suffering and reduce carbon emissions by reducing and replacing livestock production and consumption. Alternatives to dairy milk include soy and almond milk. Soy milk is nutritionally comparable to dairy milk and has a significantly smaller environmental footprint. Policy initiatives also need to address these issues. The Food and Agriculture Organization's Livestock's Long Shadow report recommends a policy approach that correctly prices natural resources to reflect the full environmental costs and to end damaging subsidies. In the interim, higher taxes on meat and other livestock products will be necessary to improve public health and combat climate change. Denmark, for instance, is considering proposals to raise the tax on meat after its ethics council concluded that climate change is an ethical problem. Governments everywhere need to have a transitional plan for livestock producers and workers - one that helps to cultivate the ethical and sustainable agricultural endeavors of the future.