Scenario #1: The Expanse The Expanse is a science fiction book and television series which is set in a future where space travel is commonplace. In this series, space travelers find ways to replicate the effects of Earth’s gravity by creating apparent weight. There are several ways that they do this: thrust, rotation, and visiting a different planet. When not employing any of these replacements for Earth’s gravity, people are said to be “on the float” with no apparent weight at all. Recall that the magnitude of the acceleration due to gravity near the surface of the Earth is g = 9.8 m/s . 2

Part A: Thrust Gravity (2 points): When a spaceship uses its thrusters to accelerate, a person inside of the ship will experience a net force which gives them an apparent weight. Suppose someone with a mass of 80 kg is on a ship in space (far away from any sources of gravity) that accelerates at ⅓ g. What is their actual weight and their apparent weight?

Part B: Spin Gravity (3 points): Medina is a fictional space station built inside of a cylindrical drum. The drum has a diameter of 960 m and it rotates; the centripetal acceleration from this rotation requires a net force on people inside of the drum and this creates an apparent weight. Draw a free body diagram and a motion diagram for someone standing inside of the drum. If the designers of this space station want to have an acceleration of ⅓ g, what period of rotation must this drum have?

Part C: Alien Planet (4 points): In the series, people land on the fictional planet of Laconia. This planet is similar to Earth in several ways; for one thing, it has the same acceleration due to gravity near its surface. However, there are some important differences: the size of the planet is larger (with a radius r = 9,500 km) and the length of the year is significantly longer (3.1 Earth years). What is the mass of Laconia? Based on what we have learned in this class, what is one possible explanation for Laconia’s year being longer than an Earth year?

Part D: On the Float? (3 points): What’s so bad about being on the float and feeling weightless? Give a plausible reason why people in the series would go to all of the effort to try to replace Earth’s gravity when in space. In your opinion, which of the above methods seems like the best way to create apparent weight and why?

You just got hired at a brand new hospital as a financial analyst and the Board wants to buy an MRI machine but they are unsure if this makes financial sense. You gather some figures so you can make an informed decision to present to the Board. (questions 40-44) Use CF’s given, no further calculation has to be done for CF’s.

Cost of the MRI machine 1.5 million

Salvage value after 5 years 50k

Working capital to hire an operator 200k only initially and not recoverable.

CF yr 1-3 400k

CF yr 4-5 300k

The hospital currently has no common stock or preferred stock or debt in their capital structure as it was funded with a 25 million dollar gift from Bill Gates. The machine is to be financed with a 5%, 5 year loan. Interest is tax deductible and the tax rate is 30%. ANSWERS IN EXCEL PLEASE

40. The IRR on this MRI machine is:

1. 4%
2. 3%
3. 7.7%
4. 6.8%

41. T/F Based on the IRR decision criteria we should accept this project

42. Based on the NPV analysis what should you recommend to the board

a. Do not recommend as it will take away 89k of value

b. Recommend as it will add 135k in value

c. Recommend as it will add 177k in value

d. Do not recommend as it will take away 23k of value

43. Assume now that the hospital was financed with 60% debt and 40% equity. The cost of debt is 6% and taxes are 20%, while the risk free rate is 3%, beta is .8 and the return of the market is 9%. If cash flow in years 1-3 are now assumed to increase to 500k instead of 400k, what would you recommend to the board?

a. Yes as it adds 136k in value

b. Yes as it adds 98k in value

c. no as the IRR<WACC

d. Yes as it adds 100k in value

44. T/F the payback under the original MRI assumptions is 4.67 years

You just got hired at a brand new hospital as a financial analyst and the Board wants to buy an MRI machine but they are unsure if this makes financial sense. You gather some figures so you can make an informed decision to present to the Board. (questions 40-44) Use CF’s given, no further calculation has to be done for CF’s.

Cost of the MRI machine 1.5 million

Salvage value after 5 years 50k

Working capital to hire an operator 200k only initially and not recoverable.

CF yr 1-3 400k

CF yr 4-5 300k

The hospital currently has no common stock or preferred stock or debt in their capital structure as it was funded with a 25 million dollar gift from Bill Gates. The machine is to be financed with a 5%, 5 year loan. Interest is tax deductible and the tax rate is 30%.

40. The IRR on this MRI machine is:

1. 4%
2. 3%
3. 7.7%
4. 6.8%

41. T/F Based on the IRR decision criteria we should accept this project

42. Based on the NPV analysis what should you recommend to the board

a. Do not recommend as it will take away 89k of value

b. Recommend as it will add 135k in value

c. Recommend as it will add 177k in value

d. Do not recommend as it will take away 23k of value

43. Assume now that the hospital was financed with 60% debt and 40% equity. The cost of debt is 6% and taxes are 20%, while the risk free rate is 3%, beta is .8 and the return of the market is 9%. If cash flow in years 1-3 are now assumed to increase to 500k instead of 400k, what would you recommend to the board?

a. Yes as it adds 136k in value

b. Yes as it adds 98k in value

c. no as the IRR

d. Yes as it adds 100k in value

44. T/F the payback under the original MRI assumptions is 4.67 years

A Sheraton Hotel bond has a par value of $1,000, and has a coupon rate of 7.25%. The coupon in paid monthly. The investor's rate of return is 9%. The bond will mature in 12 years, and the investor is planning to keep this bond until maturity. Based on this information, the value of this bond is equal to:

A. $817.85

B. $871.85

C. $858.71

D. $885.71

Ada Hotel Group has set up a pension fund for employee benefits. The company plans to put $50,000 in the fund at the end of each quarter. If this is a 20-year fund that earns 6.4% annual interest compounded quarterly, what would be fund balance at the end of 20 years?

a. $7,459,234.56

b. $9,268,201.30

c. $8,001,194.75

d. $10,238,430.10

Value of the Night Audit"

Evaluate the various night audit reports and determine which is the most valuable across the greatest number of circumstances. Explain your rationale. Analyze recent innovations in night audit procedures (with a focus on automation) to determine the most significant benefit to both guests and management of any given hotel. Explain your rationale.

What are 7 or more key ways in which marketers (in hotels and other companies) could actively and effectively engage with TripAdvisor? One way to answer this question is to assume that you are the CEO of a hotel and your TripAdvisor ratings at below 2 (where 5 is the best). What specific strategic initiatives would you as the CEO pursue to address this situation?

Peter Morgan sells pigeon pies from his pushcart in Central Park. Due to the abundant supplies of raw materials, his costs are zero. The demand schedule for his pigeon pies is p(y) =80-y/4 . What level of output will maximize Peter’s profits?

1. 164

2. 480

3. 32

4. 320

5. None of the above

You are camping in Glacier National Park. In the midst of a glacier canyon, you make a loud holler. You hear an echo 1.22 seconds later. A. How far away are the canyon walls if you assume that the speed of sound in air is 343m/s? B. If the temp of the air drops significantly, what would happen to the speed of the sound in the air?