New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $205 per night (USA Today, April 30, 2012). Assume that room rates are normally distributed with a standard deviation of $55. Use Table 1 in Appendix B.

a. What is the probability that a hotel room costs $227 or more per night (to 4 decimals)?

b. What is the probability that a hotel room costs less than $143 per night (to 4 decimals)?

c. What is the probability that a hotel room costs between $201 and $299 per night (to 4 decimals)?

d. What is the cost of the 20% most expensive hotel rooms in New York City? Round up to the next dollar.
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New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $204 per night. Assume that room rates are normally distributed with a standard deviation of $55.

(a)

What is the probability that a hotel room costs $265 or more per night? (Round your answer to four decimal places.)

(b)

What is the probability that a hotel room costs less than $120 per night? (Round your answer to four decimal places.)

(c)

What is the probability that a hotel room costs between $210 and $300 per night? (Round your answer to four decimal places.)

(d)

What is the cost in dollars of the 10% most expensive hotel rooms in New York City? (Round your answer to the nearest cent.)

New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $204 per night.† Assume that room rates are normally distributed with a standard deviation of $55.

(a)

What is the probability that a hotel room costs $255 or more per night? (Round your answer to four decimal places.)

(b)

What is the probability that a hotel room costs less than $130 per night? (Round your answer to four decimal places.)

(c)

What is the probability that a hotel room costs between $200 and $280 per night? (Round your answer to four decimal places.)

(d)

What is the cost in dollars of the 20% most expensive hotel rooms in New York City? (Round your answer to the nearest cent.)

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1. The Howell’s decided to build a resort hotel on land owned by Chief Ugundi. For each of the following items, indicate whether the cost should be recorded as Land (L), Land Improvements (LI), Resort Hotel (RH), or Equipment (E) by placing the correct answer in the space provided.

2. Prepare below the journal entry to record the above transactions assuming all costs were paid with Cash the Howell’s brought with them to the island. Please note that all costs listed above should be included in one of the accounts listed below. Just fill in the debit amounts appropriately and check to make sure all debits together equal the amount for Cash.

3. The Skipper and Gilligan spent $200,000 to build a marina in the cove. The marina is expected to have a useful life of 20 years at the end of which it is expected to have a salvage value of $30,000. Show your calculation of depreciation expense per year below.

Prepare below the journal entry to record depreciation expense for Year One using the straight-line method.

Prepare below the journal entry to record depreciation expense for Year Two.

      C. What is the book value of the marina after Year Two? Show your work below.

An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:

            Qa = 20 – Pa             where a is adult market

            Qc = 30 – 2 Pc          Where c is children market

            QT = 50 – 3 PT         where T is the two markets combined

Assume that the marginal cost of each unit of quantity is $5 (constant), the owners of the park want to maximize profit:

1. Calculate the price, quantity and profit if the amusement park charges a different price in each market.
2. Calculate the price, quantity and profit if the amusement park charges the same price in the two markets combined.

An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:

            Qa = 20 – Pa            where a is adult market

            Qc = 30 – 2 Pc         Where c is children market

            QT = 50 – 3 PT         where T is the two markets combined

Assume that the marginal cost of each unit of quantity is $5 (constant), the owners of the park want to maximize profit:

1. Calculate the price, quantity and profit if the amusement park charges a different price in each market.
2. Calculate the price, quantity and profit if the amusement park charges the same price in the two markets combined.

Hadey is approaching the housing situation from a different direction. He does a little research and learns that the mean rent for a one bedroom one bathroom apartment in Avocado Park is $1050 per month with a standard deviation of $125 per month.

A. The Avocado Park Housing Authority defines affordable housing as costing LESS than $900 per month for a 1B1R. Would such an apartment be considered unusual for the neighborhood?

B. Hadey wants to develop a new apartment building in Avocado Park offering 1B1R units at a price of $1000 per month. What effect would this new building have on the mean and standard deviation for 1B1R in Avocado Park?

C. If the Avocado Park Housing Authority issued vouchers to subsidize all 1B1Rs in the neighborhood and they lowered the rent on each unit by exactly $100 per month, what would the new mean and standard deviation be for the cost of renting a 1B1R in Avocado Park.

John is thinking to open a restaurant. He will run it only 1 year. Initial cost for opening a restaurant is 100k. Restaurant will generate EBIT of 200k at the end of year for sure. Risk-free rate is 5%. Tax rate is 35%.

1. (a) Suppose John’s current wealth is 20k. He can borrow money from a bank. Bank knows that his restaurant will generate EBIT of 200k at the end of year for sure.

   1. In this situation, would he want to open the restaurant? What is the value of his equity of the restaurant (at t=0) if he opens it? (0.8pt)

   2. If he opens the restaurant at t=0 and sell entire ownership of the restaurant to Peter at t=0, with what price can John sell the ownership? How much return did John make relative to his investment at t=0? (0.8pt)

2. (b) Suppose John has enough wealth to cover the initial cost of 100k. Assume that he can’t borrow money.

   1. In this situation, would he want to open the restaurant? What is the value of his equity of the restaurant (at t=0) if he opens it? (0.8pt)

   2. If he opens the restaurant at t=0 and sell entire ownership of the restaurant to Peter at t=0, with what price can John sell the ownership? How much return did John make relative to his initial investment at t=0? (0.8pt)

(c) Suppose John has enough wealth to cover the initial cost of 100k and opened the restaurant at t=0 by paying the initial cost with his own money. Then, he decided to lever up his restaurant. To do so, he borrowed 80k from a bank with interest rate of 5%. That 80k goes to John’s pocket.

a. What is his restaurant equity value now? (0.8pt)
b. What is his total wealth now (at t=0) including the debt proceed of 80k? (0.8pt) c. Was it a good decision relative to part.b.a? (0.8pt)

d. After levering-up, John decided to sell his equity to Mike. With what price, can John sell the ownership? How much return did John make relative to his initial investment at t=0? (0.8pt)

4. (d) Suppose John has enough wealth to cover the initial cost of 100k and opened the restaurant at t=0 by paying the initial cost with his own money. Then, he decided to lever up his restaurant. But he only wants to borrow with the risk-free rate, 5%. Bank knows that his restaurant will generate 200k at t=1 for sure.

   a. What is maximum amount of money John can borrow to lever-up his restaurant? (0.8pt)

   b. If he does borrow the maximum amount, what is value of his restaurant? What is equity value of restaurant? (0.8pt)

   c. How much money did John make relative to his initial investment by levering-up this way? How much return did John make relative to his initial investment? (0.8pt)

5. (e) Suppose John has 0 wealth. Bank knows that once his restaurant is open, it will generate 200k at

t=1 for sure.

1. What is maximum amount of money John can borrow from bank? (0.8pt)

2. Can he open the restaurant? (0.8pt)

3. If your answer to (e).b is yes, would he open the restaurant? (0.8pt)

4. Does his wealth increase by opening the restaurant at t=0 by borrowing the maximum amount of money? If so, how much does it increase? (0.8pt)

Design an individual column footing where DL = 200k, LL = 500k, allowable soil pressure = 3k/ft2, f′c col = 4ksi, f′c ftg = 3ksi, 28″ x 28″ column, supporting interior column.

Design an individual column footing where DL = 200k, LL = 500k, allowable soil pressure = 3k/ft2, f′c col = 4ksi, f′c ftg = 3ksi, 28″ x 28″ column, supporting interior column.