What happens if you perform a double slit experiment near an event horizon, if one of the slits is outside, one is inside the event horizon?

A manufacturer is considering alternatives regarding the production of highly specialized

and useful precision part, originally engineered and developed by the company, and

supplied to the company’s main customer. The company has patented the design and the

use of that particular component, so no-one else can produce it without the company’s

permission, and, therefore, it is one of the most profitable products that the firm sells,

providing $5M in annual revenues for the firm. Recently, however, the firm made certain

improvements to the alloy used in the production of the part, something the engineers

considered necessary to ensure the part meets new safety standards. Without certain

modifications, the existing equipment used in the production of the part in question would

not be able to handle the new alloy. In choosing how to address the problem, the company

has three alternatives. All alternatives will be able to use the new alloy, will result in the

same quality of finished produce, satisfying the company’s and its customer’s demands,

but differ in annual maintenance costs, initial price, and longevity.

The first alternative is to keep existing equipment, but update it to handle the new alloy.

The old equipment was bought three years ago, at the price of US$2.3M and is being

depreciated on the straight-line basis over 8-year useful life to its expected salvage value

of zero. In fact, the old equipment is already worthless on the market, because moving it

somewhere else costs as much as other firms are willing to pay for it. The necessary

updates, which need to be depreciated over 3 years, will not prolong the life of the

equipment, but will allow to increase the quality of finished product to the necessary level.

The expected cost of the necessary updates is $500K. The old equipment requires

$300,000 in annual maintenance expense.

The second alternative is to replace the old equipment with new one. The new equipment

would cost US$1.7M to buy and install, requires $500,000 in annual maintenance expense,

but has a useful life of 5 years. It is also depreciated using straight-line method but has a

salvage value of $200,000 at the end of its life.

The third alternative is to outsource the production of the part to an external contractor.

The management expected that external contractors would charge $800K per year to

produce the required quantity of the product, at the required quality, using the newlydeveloped

alloy.

What alternative would be the least costly for the company and what alternative should the

company choose? The company’s weighted average cost of capital is 10% and its marginal

rate of income tax is 21%.

- Use EXCEL to answer

Sexual Harrassment

The question posted by Chourok C on the Yahoo! Answers web page begins this way: I just started this job 2 weeks ago as the CEO’s personal assistant. He is married 3x and is a very charismatic man, the CEO of a self-built multi-million empire. After a few days, he suddenly asked me if he could take me out to diner in London, if I book my flights and hotel he will afterwards reimburse me. [1] It was then, she relates, that she knew he wanted to sleep with her. In her words, she’s “totally not interested, but wants to preserve the job by not rejecting him.” So she made an excuse to get out of it and her post continues: “He then bothered me for hours about giving him good reasons why I couldn’t go. Then he said OK, next week we will go to Milan! He is a very powerful man, and I just get nervous of him. But I really do not want to lose my job. What should I do?” [2]

Case Study 2 Questions

4.The poster called Srta. Argentina answers, “He can’t fire you because you rejected his sexual advances. You can sue him if he does. And you can file a sexual harassment claim against him.” [4]

-Sketch the harassment case against the CEO.

-If the CEO hired you to form an ethical defense of his behavior, what would the case look like?

6.Ethically, is there any difference between the boss threatening to fire her unless he gets what he wants and her threatening to turn him in unless she gets what she wants? If so, what is it? If not, why not?

Please provide the table and answers to each question with calculations, Thank you

A company producing plastic cell-phone cases uses a $5,000 blower, a $2,000 processor, and $4,200 worth of molds. The rent paid for their space in an industrial park is $5,000 per production period. The cost of materials (resins and compounds) is $10 per unit. The cell phone case market is competitive, with a market price of $25. Each unit of labor is paid $5,000 per production period. The production technology is described by Table 2.

1(a). How many cell-phone cases will the company produce to maximize profit? What is the maximum amount of profit?

1(b). Using the company's short-run cost curves (ATC, AVC, and MC) and the MR curve, demonstrate how you found your answer to Question 1(a).

1(c). What is the company's break-even price?

Kaimalino Properties (KP) is evaluating six real estate investments. Management plans to buy the properties today and sell them five years from today. The following table summarizes the initial cost and the expected sale price for each property, as well as the appropriate discount rate based on the risk of each venture.

KP has a total capital budget of $18,000,000 to invest in properties.

a. What is the IRR of each investment?

b. What is the NPV of each investment?

c. Given its budget of $18,000,000, which properties should KP choose?

d. Explain why the profitability index method could not be used if KP's budget were 12,000,000 instead. Which properties should KP choose in this case?

Harvey’s REIT is a company that invests in income generating land and buildings. Since Harvey’s is organized as a REIT it must pay out most if not all of its income to shareholders as a dividend. Since the firm is a “pass through” vehicle (passes income straight threw to investors), the REIT pays no taxes (its investors get taxed at the personal level with all income treated as ordinary income). With little retained earnings, new real estate acquisitions are debt or equity financed.

Harvey has two categories of investment. One category is hotels and the second is land for special events parking. The land business is very interesting because you can simply buy the land and there is little or no working capital or capital expenditure needs since the land is often just fields near ballparks, state fairs, concert facilities, etc…

For most of Harvey’s businesses, the cash flow grows at roughly the inflation rate. Hotel fares and parking rates trend up with inflation. Acquisitions rarely add much value, since they are bought in competitive real estate markets. What you pay is pretty close to the discounted cash flow value of what you buy. No acquisitions are currently on the radar and most believe that there should be little “value from future acquisitions” in Harvey’s REIT share prices.

Harvey has entertained breaking up the two units perhaps by divesting one and keeping the other. He wonders what each unit is worth. Here are the cash flows of each business

Hotels: FCF = 90m upcoming year

Parking land FCF = 30m upcoming year

Both business are expected to grow their FCF at 2.4% in perpetuity (due to inflation)

Recall from your prior classes a growing perpetuity is worth:  

Value now = FCF(upcoming year) / (discount rate on FCF – growth rate in perpetuity)

For the most part, given the absence of taxes, it is believed that the firm’s situation approximates perfect market conditions (assuming debt is not 75% plus of total financing which could raise bankruptcy concerns).

Similar (non-taxed) REITS have the following data:

Pure plays (MV stands for market Value and all figures in millions):

The land parking business is unique in the world of publicly traded equities. There are no pure plays out there. All the above firms with D/E below 1.1 are able to borrow at approximately 4.5%. The market risk premium is 5% and the risk free rate is 4.5%. The same is true for Harvey.

Harvey currently has market value of debt = 1000m

Harvey has a market value of equity = 1500m

Harvey has an equity beta of 0.9.

Harvey does not “allocate debt” between divisions. He views the debt ratio of each to be the same.

Assume that Harvey views the market valuation of his firm as likely accurate – he believes that markets are “efficient.” He also views the valuation of competitors as reasonably accurate. He thinks the listed hotel competitors have properties with fairly similar risk, but realizes there may be slight errors in beta estimates (up or down) and averages of beta will have less errors.

How can Harvey figure out the value of his hotel business (not equity or debt pieces, the whole value) and what is the estimate for it? Show the steps for doing so for partial credit

What is the value of the Land business, its’ WACC, and its’ unlevered beta?

Assume that no divestiture takes place. If the Land business got an unexpected opportunity to acquire a piece of land that would generate FCF = 2m growing at 2.4% in perpetuity, and it had an asking price of 48m, should it do the deal? Why or why not?

Some at the firm say that 2/48 = 4.1667%. They note that the accounting return is not even sufficient to cover the cost of borrowing (if the project is financed with all debt) and therefore the project should not be taken. Does this logic make sense? Explain why or why not? (An explanation of what is right or wrong with argument would be useful.

PYTHON PYTHON

Recursive Functions. In this problem, you are asked to write three recursive functions. Implement all functions in a module called problem1.py.

1. (10 points) Write a recursive function called remove char with two parameters: a string astr and a character ch. The function returns a string in which all occurrences of ch in astr are removed. For example, remove char("object oriented", ’e’) returns the string "objct orintd". Your implementation should not contain any loops and may use only the index [] and slice operators [:] for strings. No other built-in functions may be used.

2. (10 points) Write a recursive function called occurrences with two parameters: a string astr and another (nonempty) string substr. The function returns the number of times the substring substr appears in the string astr. For example, occurrences("how now brown cow", "ow") should return 4, occurrences("house mouse louse", "ow") should return 0, and occurrences("green eggs and ham", "egg") should return 1. Your implementation should not contain any loops and may use only the index [] and slice operators [:] for strings. No other built-in functions may be used. Please note that in is a built-in function, and you may not use it to implement your function.

3. (10 points) Write a recursive function called duplicates with a single parameter L, a list of items. The function returns True if L has any duplicate (i.e. repeating) items and False otherwise. The function must be implemented recursively. The base case occurs when the list is empty (in which case it returns False). Your function should consist only of the base case and recursive calls in an if/else statement. You are not allowed to use any built-in functions other than len for lists. Please note that in is a built-in function, and you may not use it to implement your function. In addition, you are only allowed to use the index operator [] and the slice operator [:] for lists. There should not be any loops (for or while) in your implementation! Hint: Your function will need two recursive calls, not just one.

Suppose you put positive charge on an insulated metal box (actually, remove electrons from the box). Since it is a conductor, the charges will rearrange.
- The greatest accumulation of charges will be

- The electric field inside the box will be

2. Suppose identical metal spheres are insulated from their surroundings and touching each other. A positive charge is brought near, but not touching sphere A, and held near to sphere A as the two spheres are separated. Now, the positive charge is removed. What charge will be left on sphere A and sphere B, respectively?