The following data were summarized from the accounting records for Jersey Coast Construction Company for the year ended June 30, 2016:

Wollongong City is considering the construction of a new waste treatment plant. Land acquisition will
cost $120,000. The construction works required for the plant will cost $600,000. Environmental
inspection and other expenses will cost $60,000. The plant will be built in Year 0 and will become fully
operational in Year 1 for six years (i.e. until Year 6). The annual operating cost for the plant is estimated
to be fixed at $120,000 during its anticipated 6-year service life. This waste treatment plant is expected
to reduce $12 in the average annual waste treatment fee for each of the 35,000 households that it will
serve. The reduction in the annual waste treatment fee and the number of households in Wollongong
City are both assumed to be fixed for the 6 years. Changes in the environmental conditions (air
pollution and contamination to surrounding lands) must be reflected at the cost of $150,000 at the end
of the service life of the plant.

Determine the Internal Rate of Return (IRR) of the project, given that the IRR is between
25% and 30%.

You are a CEO of a national restaurant chain. You are facing an investment proposal of building 20 new hotels across the country. Since hotel is a new business line for your company, the management finds Hilton Hotel corporation as one pure play company to assist the evaluation of this investment proposal. With the following information, what discount rate should you use to evaluate this investment proposal?

1 year government bond return: 0.85%

10 year government bond return: 2.41%

Expected market risk premium: 5%

Info on Hilton

Equity return: 6.20%

Equity beta: .76

Debt to value ratio: 14%

Marginal tax rate: 40%

Info on your company

Book value of long-term debt: $5,000,000

Book value of equity: $5,000,000

Share price: $15

Number of shares outstanding: 1,000,000

Debt rate premium above government bonds is 3%

Marginal tax rate: 40%

The before tax cost of debt is _______________%

Early in 2019, Dobbs Corporation engaged Kiner Construction, Inc. to design and construct a new manufacturing facility for Dobbs. Construction began on June 1, 2019, and was completed on December 31, 2019. Dobbs made the following payments to Kiner during 2019: Date Payment amount June 1, 2019, $6,000,000 August 31, 2019, 9,000,000 December 31, 2019 7,500,000 In order to finance the construction, Dobbs issued a $5,000,000, 10 year, 9% bond, issued at par on May 31, 2019, with interest payable annually on May 31. In addition to the $5,000,000 bond issue, Dobbs also had the following additional debt outstanding during 2019: $1,250,000 note payable, the interest rate of 12%, a maturity date of January 1, 2020, interest payable annually on January 1st. $1,000,000 loan payable, the interest rate of 7%, maturing on January 1, 2025, with interest payable quarterly. Requirements Compute the following amounts: 1. Weighted-average accumulated expenditures qualifying for capitalization of interest cost in 2019. 2. Maximum interest incurred during 2019. 3. Total amount of interest cost to be capitalized (i.e., included in the total cost of the manufacturing facility) for 2019. 4. The total cost of the facility.

3. A survey found that women’s heights are normally distributed with a mean of 62.7 in. and standard deviation 2.7in. The survey also found that men’s heights are normally distributed with a mean 68.1 in and a standard deviation of 2.66 in. Complete parts (a) through (c) below.
Most of the life characters at an amusement park have height requirements with a minimum of 4ft 7 in. and a maximum of 6ft 3 in.
a) Find the percentage of women meeting the height requirements. Round to four decimal places.

b) Find the percentage of men that meet the requirements. Round to two decimal places.

c) If the height requirements are changed to exclude only the tallest 6% of men and the shortest 6% of women, that are the new height requirements? Round to one decimal place.

4. Assume that women’s heights are normally distributed with a mean given by     µ = 62.5 in, and a standard deviation given by σ = 2.2 in.

a) If 1 woman is randomly selected, find the probability that her height is less than 64 in. Round to four decimal places.

b) If 10 women are randomly selected, find the probability that they have a mean height less than 64 in. Round to four decimal places.

5 . Express the confidence interval 0.333 < p < 0.777 in the form

  = …….. ± ………

Mr Sultan al Hadrami is planning to construct his own house. He is planning to construct the house in a phased manner. At present he is working with Oman Air and is earning salary RO 12000 every year . The Cost of Construction of the house is RO 50,000 if the construction is completed in one year. However if the construction is done in parts, the cost of contrition will increase and may go up to 60000 if completed in six years. Mr Sultan is seeking your advice on the two option.

Option A- Take a loan from bank for RO 50,000 now and construct the house in one year The loan will be for 6 years with interest on the loan @ 8%p.a. The amount of the loan could be repaid in monthly installments.

Option B Construct the house in parts ( without loan ) In this option Mr Sultan expects to save RO 900 every month. At the end of each year he will used his saving and construct some part of the house. So in this way he will take six years to complete the House. The interest on saving will be @ 6%p.a..

You are required to evaluate the above two options and suggest
a) The total amount to be paid in Option A
b) The total amount to be saved and used in construction in Option B

Note :need solve in Microsoft Excel

Task 2 Scenario Mega construction Plc, are contractors for replacement of a high technology factory for a multinational company. The total value of the contract is £ 3,500,000 over a three year period. The contract commenced on 1st March 2011, & the following details are available as at 28th February 2012

Mega Construction Plc, have received payment of £ 540,000 which represent work certified as
completed by architects as at 28 February 2011, less a 15% retention.

The company takes credits for three fourth of the profits on work certified (less retention). The
plant is estimated to last the life of the contract, & no residual value is expected.

2.1 Explain the principle of contract costing in construction industry.
2.2 Calculate the attributable profit/ loss & value of work certified.
2.3 Prepare contract cost statement for Mega Construction Plc. (40 marks

A hotel manager is looking to enhance the initial impression that hotel guests have when they check in. Believed to contribute to initial impressions is the time it takes to deliver a guest’s luggage to his or her room after check-in. A random sample of 20 deliveries on a particular day were selected from Wing A of the hotel, and a random sample of 20 deliveries were selected in Wing B (i.e., the Excel tab LUGGAGE).

(a) Identify which type of test is most appropriate for you to use, justify your answer.

(b) Determine whether or not the mean delivery time differs for the two wings of the hotel (use α = .05).

(c) If faster luggage delivery time is positively related to guests’ initial impression, which wing(s) should receive the highest impression ratings?

You have been appointed as the new general manager of a named hotel. The hotel is not performing as expected and is not meeting its target. Your first assignment is to resolve this problem. Describe in details how you would go about addressing this problem. Hint: Describe the data collection approaches you would use (Observation, interviews, surveys, historical research (past 5 years), etc.) and why you chose this specific form of data collection etc.

A hotel manager is looking to enhance the initial impression that hotel guests have when they check in. Believed to contribute to initial impressions is the time it takes to deliver a guest’s luggage to his or her room after check-in. A random sample of 20 deliveries on a particular day were selected from Wing A of the hotel, and a random sample of 20 deliveries were selected in Wing B (i.e., the Excel tab LUGGAGE). (a) Identify which type of test is most appropriate for you to use, justify your answer. (b) Determine whether or not the mean delivery time differs for the two wings of the hotel (use α = .05). (c) If faster luggage delivery time is positively related to guests’ initial impression, which wing(s) should receive the highest impression ratings?