A physical therapist evaluates an individual that sustained…

A physical therapist evaluates an individual that sustained a concussion during hockey practice last week and complains of continued severe visual fatigue and headaches. When creating the plan for the evaluation, which of the following would be MOST important for this individual?

A company plans to spend $3,700,000 on equipment. The equipm…

A company plans to spend $3,700,000 on equipment. The equipment will be depreciated using the MACRS method and a 5-year recovery period. The company uses a study period of 6 years for these types of purchases and plans to keep the equipment indefinitely. Gross income is expected to be $900,000 in year 1 and increase by $170,000 each year. Annual operating expenses are expected to be $50,000 in year 1 and increase by $70,000 each year. The company’s combined marginal tax rate is 39%. A portion of the after-tax cash flow analysis is shown below. Year GI OE CFBT Dt TI Taxes CFAT 0 −$3,700,000 1 $807,100 2 $1,041,260 3 $917,556 4 $867,734 5 $1,580,000 $330,000 (a) $426,240 (b) (c) (d) 6 $906,617 Round to nearest dollar. For Year 5, what is the cash flow before taxes, CFBT? $ For Year 5, what is the taxable income, TI? $ For Year 5, what is the amount of taxes, Taxes? $ For Year 5, what is the cash flow after taxes, CFAT? $ What is the after-tax Rate of Return over the study period? %  (one decimal) If the company’s MARR is 15%, should they invest in this equipment, YES or NO?

Two projects are under consideration. Both projects have a l…

Two projects are under consideration. Both projects have a life of 50 years. Estimates are given below. Use an annual interest rate of 10% for your analysis.   Project A Project B Initial Investment $15,000 $10,000 Present Worth of Benefits $32,200 $21,800 Present Worth of O&M Costs $3,970 $1,980 (Round ratios to 2 decimal places) What is the Benefit-Cost ratio for Project A?   What is the Benefit-Cost ratio for Project B?   Based on a Benefit-Cost analysis, which Project should be selected, A or B?   

To reduce process lead time, a manufacturer is analyzing a p…

To reduce process lead time, a manufacturer is analyzing a proposed project. The company’s market interest rate is %. The general inflation rate over the life of the project is expected to be %. What is the inflation-free interest rate that should be used in the analysis? (Answer as a percentage, to two decimal places.)

A manufacturer plans to spend $3,700,000 on equipment. The e…

A manufacturer plans to spend $3,700,000 on equipment. The equipment will be depreciated using the MACRS method with a 5-year recovery period. The manufacturer plans to keep the equipment indefinitely and uses a study period of 6 years for these types of purchases. Annual operating expenses are expected to be $50,000 in year 1 and increase by $70,000 each year. Gross income is expected to be $900,000 in year 1 and increase by $170,000 each year. A portion of the after-tax cash flow analysis is shown below. The manufacturer ’s combined marginal tax rate is 39%. Year GI OE CFBT Dt TI Taxes CFAT 0 −$3,700,000 1 $807,100 2 $1,070,000 $120,000 (a) $1,184,000 (b) (c) (d) 3 $917,556 4 $867,734 5 $928,734 6 $906,617 Round to nearest dollar. For Year 2, what is the cash flow before taxes, CFBT? $ For Year 2, what is the taxable income, TI? $ For Year 2, what is the amount of taxes, Taxes? $ For Year 2, what is the cash flow after taxes, CFAT? $ What is the after-tax Rate of Return over the study period? %  (one decimal) If the company’s MARR is 11%, should they invest in this equipment, YES or NO?

A cherry processing facility in Northern Michigan processes…

A cherry processing facility in Northern Michigan processes both sweet and tart cherries for local growers. The facility needs to install a new cherry pitter. An analyst recently obtained the following estimates. Preliminary feasibility study (this year, year 0) $4,000 Purchase & install system (this year, year 0) $240,000 Annual operating costs (years 1-8) $14,000 in year 1, increasing by $3,000 each year Salvage value (year 8) $24,000 Other phase-out activities (year 8) $3,000 The cherry pitter would be used for eight years. The facility uses a before-tax MARR of 10% per year for these types of decisions. What is the capital recovery (CR) cost of the system? What is the annual equivalent worth of the operating costs? What is the annual equivalent cost of this project?