Search & Filtering
What are bureaucrats and how do they contribute to government failure? Please use relevant South African examples.
Discuss the relavant regulation, frameworks and processes management within the south African public sector.
How many of the below statements are incorrect?
-> Under discriminating monopoly, different prices may be charged to different buyers for the same product.
-> Each oligopolist firm is of the opinion that its competitors will match its increase in price above the prevailing level.
-> Monopolistic competition is a theoretical concept.
(2 Points)
1
2
3
A proposed chemical plant has the following projected revenues and operating expenses in million of dollars
Year: 1,2,3,4,5,6,7
Annual revenue, $*10^6: 7, 10, 15, 20, 22, 24, 25
Annual operating expenses, $ (excluding depreciation)*10^6 : 4, 5.6, 6.8, 7.8, 8.8, 9.6, 10
Using fixed-capital investment for the plant is $50 million with working capital of $7.5 million. Using a MARCS depreciation schedule wit a class life of 5 years, determine
a-) The annual cash flow
b-) The net present worth, using the nominal discounted rate of 15 percent
c-) The DCFR
In the design of a chemical plant, the following expenditures and revenues are estimated after the plant has achieved its desired production rate.
Total capital investment (TCI) : $10 000 000
Working capital investment (WCI) : $1 000 000
Annual sales : $8 000 000 /year Annual expenditures : $2 000 000 /year
Assuming straight-line depreciation over a 10-year project analysis period, determine
a) The return on the investment after taxes
b) The payback period
A company must purchase one reactor to be used in an overall operation. Four reactors have been designed, all of which are equally capable of giving the required service. The following data apply to the four designs:
Fixed-capital (FCI),TL 10000 12000 14000 16000
Sum of operating and fixed costs per year (all other costs are constant) 3000 2800 2350 2100
If the company demands a 15 percent return after taxes on any unnecessary investment, which of the four designs should be accepted?
A heat exchanger has been designed and insulation is being considered for the unit. The insulation can be obtained in thickness of 0.025, 0.051, 0.076, or 0.102 m. The following data have been determined for the different insulation thicknesses:
Insulation thickness, m 0.025 0.051 0.076 0.102
kJ/s energy saved 88 102 108 111
Cost for installed insulation, $ 8 000 10 100 11 100 11 500
Annual fixed charges (% of installed cost) 10 10 10 10
What thickness of insulation should be used? The value of heat is $1.50/GJ. An annual return of 15 percent on the fixed-capital investment is required for any capital utilized in this type of investment. The income tax is 35 percent/year. The exchanger operates 300 days per year.
According to Bertrand and Mullainathan (2003), ‘if African-Americans recognize how employers reward their skills, they may be rationally more reluctant than whites to even participate in these programs’. Critically reflect on the policy measures necessary to address labour market discrimination.
What is economic system
Suppose you are instructed by your managing director/head of the division to advise him/her of the potential impact on the following elements of the company’s/government department’s activities based on the current South African economy and/or global economic environment: a) Expansion of current capacity of company/division or not, provide reasons; b) Borrowing of money in the domestic or foreign market to finance activities; c) Utilisation of labour versus capital resources in production/service delivery; d) Is there any scope to take your business abroad or into Africa given the current domestic and foreign economic climate? Provide reasons why or why not. Your report to the managing director/head of division must be brief and to the point.
