Demand for hotel rooms in Tallahassee takes two possible values: on game days, demand is described by the demand curve q = 100−p, while on non-game-days demand is described by the demand curve q = 60 − 2p.

(a) Suppose that the hotel price on game days is ph = 80. What quantity is demanded at this price?

(b) Find the inverse demand curve on non-game-days. Assuming that the price on game days is ph = 80 as above, what price would induce the same quantity demanded on non-game-days as on game days?

(c) Plot the demand curves on game days and on non-game-days. Pay careful attention to the price and quantity intercepts for both curves.

(d) Assuming the price on non-game-days is as you found in (ii), what is consumer surplus in this market on non-game-days? What is consumer surplus on game days?

(e) Suppose that you encounter the following claim: “Because the hotel price is higher on game days than on non-game-days, consumer surplus in the hotel market must be lower on game days.” What is wrong with this claim?

a) In order to determine the average price of hotel rooms in Atlanta, a sample of 61 hotels were selected. It was determined that the average price of the rooms in the sample was $111.9. The population standard deviation is known to be $19. We would like to test whether or not the average room price is significantly different from $110.

Compute the test statistic.

b) In order to determine the average price of hotel rooms in Atlanta, a sample of 61 hotels were selected. It was determined that the test statistic (z) was $-1.01. We would like to test whether or not the average room price is significantly different from $110. Population standard deviation is known to us.

Compute the p-value.

c) In order to determine the average price of hotel rooms in Atlanta. Using a 0.1 level of significance, we would like to test whether or not the average room price is significantly different from $110. The population standard deviation is known to be $16. A sample of 64 hotels was selected. The test statistic (z) is calculated and it is -1.8.

We conclude that the average price of hotel rooms in Atlanta is NOT significantly different from $110. (Enter 1 if the conclusion is correct. Enter 0 if the conclusion is wrong.)

You are the financial manager of Walnut Grove City, a small mid-eastern town, and in charge of creating a capital budget for the next year. The only project on the agenda is building a clock tower within the city square and expanding the adjacent park for small events. You must incorporate into the budget the expense of building a clock tower in the city's town square and adjacent park, and may choose the size, exact location and materials to be used. The expense for the clock tower is estimated to be $400,000 and clean-up of the adjacent park is estimated to be $50,000. After the expansion, three events are planned: 1. Street party celebrating the new clock tower and park which will continue as an anniversary party every year thereafter, and is expected to have a net income of $75,000; 2. Fourth of July fireworks celebration with expected net income of $125,000; and 3. Labor Day carnival to celebrate going back to school and harvest which is expected to have a net income of $50,000. All three events will be continued each following year.

Explain the five capital budgeting steps you will use and how each step will be associated with the clock tower project.

The City of Comstock had a total General Fund balance of $1,400,000 at the end of its fiscal year. The year end balance sheet reports inventory of material and supplies of $60,000. City Council passed an ordinance that all revenue received from hotel occupancy taxes must be used for beautification projects in the City. The City received $280,000 in hotel occupancy taxes and spent $225,000 on beautification projects this year. The City received a Federal grant of $120,000 for specifically the purchase of new breathing apparatus for the fire department. Due to a backlog by the manufacturer of the equipment, the equipment has not been purchased by year end.

Which of the following statements are correct regarding the classifiction of fund balance at year end?

Compare the Greek arts to the Roman arts. When the Romans came to power, their art was heavily influenced by the Greeks, but with some changes. In what ways did the Romans change the Classics of the Greek artistic legacy? Include examples of how the Romans transformed Greek philosophy, architecture, theater, and sculpture and reinterpreted it into their own unique Roman style.   

Sidneyland is a popular theme park in Southern California that is now planning for its eventual re-opening after closing during Covid-19. In years past, New Years Eve was the single largest day of revenue earned by the park due to the high sales volume of NYE themed merchandise. However, this year it is uncertain if Sidneyland will even be opened on New Years Eve, and the time to order the 2021 apparel is approaching. The first purchase deadline is at the end of October, at which point Sidneyland can either buy the goods in full for​$100,000 or defer the decision until the end of November. At the end of November, the rush order price rises to​$150,000​. There is ​no cost nor profit if no purchase is made​. Sidneyland’s public health and data science consultants estimate that there is a​40% chance that the local Covid-19 situation improves from the end of October to the end of November, a​60% ​chance that it stays in the current most restrictive tier. If it improves, the experts predict a​90% ​chance the park is open on NYE, compared to a ​30%​ chance if it stays in the current most restrictive tier. Assuming that all goods sell for ​$200,000 if the park is open on NYE but are otherwise unsellable, answer the following questions about Sidneyland’s purchasing strategy if their goal is to maximize expected merchandise profit.

A) What are all of the different times to make a decision, and what decisions can be made at those times? ​

B) Supposing that Sidneyland defers and waits to make a decision at the end of November and supposing further that the public health scenario improves from October to November, what strategy should they take and what is the resulting expected earnings (or losses)?

C) Using the projections from the end of October, what are the expected merchandise earnings (or losses) if Sidneyland elects to defer the decision from October to November? ​

D) Using the projections from the end of October, what are the expected merchandise earnings (or losses) if Sidneyland buys the merchandise at the end of October?

E) What decision should Sidneyland make at the end of October? Explain.

Economic Forecasting. Assume you are a cartoon artist at a local theme park. At your current price, $8.50, you sell 500 sketches a month. As a result of a $1.00 price increase sales reduced by 100 sketches.

1. What is the demand elasticity of your sketches? Interpret your results.
2. Assume your marginal cost is $4. What is your desired margin and your current margin? Interpret these numbers.
3. Was your price strategy profitable? Why or why not?

The Ocean City water park is considering the purchase of a new log flume ride. The cost to

purchase the equipment is $5,000,000, and it will cost an additional $380,000 to have it installed. The equipment has an expected life of six years, and it will be depreciated using a MACRS 7-year class life. Management expects to run about 150 rides per day, with each ride averaging 25 riders. The season will last for 120 days per year. In the first year the ticket price per rider is expected to be $5.25, and it will be increased by 4% per year. The variable cost per rider will be $1.4, and total fixed costs will be $425,000 per year. After six years, the ride will be dismatled at a cost of $215,000 and the parts will be sold for $450,000. The cost of capital is 8.5%, and its marginal tax rate is 35%.

a. Calculate the initial outlay, annual after-tax cash flow for each year, and the terminal cash flow.

b. Calculate the NPV, IRR, and MIRR of the new equipment. Is the project acceptable?

c. Create a Data Table that shows the NPV, IRR, and MIRR for MACRS classes of 3, 5, 7, 10, 15 and 20 years. What do you conclude about the speed of depreciation and the profitability of an investment?

d. Using Goal Seek, calculate the minimum ticket price that must be charged in the first year in order to make the project acceptable.

A rectangular swimming pool has dimensions of 25 m x 9 m and a depth of 1.8 m and is full to the brim with water. Determine a) the absolute pressure at the bottom of the pool, b) the total force on the bottom of the pool, and c) the absolute pressure at point P, a point on the side of the pool just near the bottom. (Worth 2 pts)