| Assessment 9: Making the Right Decision Worksheet | |||||||||||||||||||||||
| Problems 1–4 | |||||||||||||||||||||||
| Input values | |||||||||||||||||||||||
| Complete problems 1–4 based on the following scenario. | |||||||||||||||||||||||
| Megacorp needs to decide which of two new projects to invest in. | Company name | Megacorp | |||||||||||||||||||||
| · | Project A is an investment in new machinery that will cost $750,000 | Tax rate | 30% | ||||||||||||||||||||
| and has a four-year life with no salvage value. | Discount rate | 6% | |||||||||||||||||||||
| · | Project B is an investment in new machinery that will cost $750,000 | Project A | Project B | ||||||||||||||||||||
| and has a three-year life with no salvage value. | Investment | $ 750,000 | $ 750,000 | ||||||||||||||||||||
| Using straight-line depreciation, Megacorp predicts that the two projects | Life of machinery (in years) | 4 | 3 | ||||||||||||||||||||
| will yield the following annual results, with cash flows occurring evenly | four | three | |||||||||||||||||||||
| throughout the year. | Salvage value | $0 | $0 | ||||||||||||||||||||
| Predicted Annual Results | Predicted Annual Results | ||||||||||||||||||||||
| Project A ($) | Project B ($) | Project A ($) | Project B ($) | ||||||||||||||||||||
| Sales | 700,000 | 560,000 | Sales | 700,000 | 560,000 | ||||||||||||||||||
| Expenses: | Direct materials | 98,000 | 70,000 | Expenses: | Direct materials | 98,000 | 70,000 | ||||||||||||||||
| Direct labor | 140,000 | 84,000 | Direct labor | 140,000 | 84,000 | ||||||||||||||||||
| Overhead including depreciation | 252,000 | 252,000 | Overhead including depreciation | 252,000 | 252,000 | ||||||||||||||||||
| Selling and administrative expenses | 50,000 | 50,000 | Selling and administrative expenses | 50,000 | 50,000 | ||||||||||||||||||
| Total expenses | 540,000 | 456,000 | Total expenses | 540,000 | 456,000 | ||||||||||||||||||
| Pretax income | 160,000 | 104,000 | Pretax income | 160,000 | 104,000 | ||||||||||||||||||
| Income taxes (30%) | 48,000 | 31,200 | Income taxes (30%) | 48,000 | 31,200 | ||||||||||||||||||
| Net income | 112,000 | 72,800 | Net income | 112,000 | 72,800 | ||||||||||||||||||
| Complete the problems below. Add answers in this template and show your work. | Present value of $1 at 6% annuity for 4 years | 3.4651 | |||||||||||||||||||||
| Present value of $1 at 6% annuity for 3 years | 2.6730 | ||||||||||||||||||||||
| Problem 1 | Compute the annual expected net cash flows for each project. | ||||||||||||||||||||||
| Problem 2 | Determine the payback period for each project. | ||||||||||||||||||||||
| Problem 3 | Compute the accounting rate of return for each project. | ||||||||||||||||||||||
| Problem 4 | Determine the net present value using 6% as the discount rate | ||||||||||||||||||||||
In: Accounting
Consider the following table for a single-factor ANOVA.
| Level of Factor | |||
| Replicates | 1 | 2 | 3 |
| 1 | 1 | 5 | 4 |
| 2 | 1 | 4 | 4 |
| 3 | 2 | 3 | 6 |
(a) Find x1,2.
(b) Find x2,1.
(c) Find C1.
(d) Find x.
(e) Find (Ci )2.
In: Statistics and Probability
Compute the projection of y = (1, 2, 2, 2, 1) onto span (x1, x2) where
x1 =(1, 1, 1, 1, 1) x2 =(4, 1, 0, 1, 4)
The inner product to use is the usual dot product. (This will compute a best-fitting function that is quadratic with no linear term, fitting to the data (−2, 1),(−1, 2),(0, 2),(1, 2),(2, 1).)
In: Advanced Math
A Hackerrank Challenge:
Given an NxN matrix, slice it and find the minimum slice weight.
A slice consists of all the elements that are below, below right, or below left of the element above it. The Min Slice Weight is the minimum sum of all elements in the slice.
Example: given input
1 2 3
4 5 6
7 8 9
The slices would be 1 4 7 1; 1 4 8; 1 5 7; 1 5 8; 1 5 9; 2 4 7; 2 4 8; 2 5 8; 2 5 9;2 6 8; 2 6 9 ....etc.
KEEP IN MIND THAT THE MATRIX IS NOT 3 X 3, BUT N X N.
The minimum slice would be 1 4 7 in this case because 1+4+7 is the minimum of all the sums;
Write a function public int FindMinSlice
(List<List
In: Computer Science
A fixed number of moles of an ideal gas are kept in a container
of volume V and an absolute temperature T.
If T doubles while V is held constant, the new net internal energy
of the gas will be ________ times the original internal energy of
the gas.
| A: 1/4 | B: 1/2 | C: 1/sqrt(2) | D: equal to | E: sqrt(2) | F: 2 | G: 4 |
If T and V are both doubled, the new r.m.s. velocity of the
molecules in the gas will be _________ times the original r.m.s.
molecular velocity.
| A: 1/4 | B: 1/2 | C: 1/sqrt(2) | D: equal to | E: sqrt(2) | F: 2 | G: 4 |
In: Physics
c. Taking every 20th passenger in your sorted table, create a new table that lists Passenger ID and Rating for the 20 data points you will now have (In excel please) with formula. I am stomped by this.
| TABLE C5-1: PASSENGER ID and CUSTOMER EXPERIENCE RATING | |
| Passenger ID | Rating (1-5) |
| T006 | 4 |
| T007 | 5 |
| T008 | 1 |
| T009 | 4 |
| T010 | 5 |
| T011 | 3 |
| T012 | 2 |
| T013 | 3 |
| T014 | 2 |
| T015 | 3 |
| T016 | 4 |
| T017 | 4 |
| T018 | 4 |
| T019 | 5 |
| T020 | 3 |
| T021 | 3 |
| T022 | 2 |
| T023 | 5 |
| T024 | 2 |
| T025 | 5 |
| T026 | 4 |
| T027 | 2 |
| T028 | 2 |
| T029 | 2 |
| T030 | 4 |
| T031 | 5 |
| T032 | 5 |
| T033 | 4 |
| T034 | 1 |
| T035 | 4 |
| T036 | 3 |
| T037 | 2 |
| T038 | 2 |
| T039 | 4 |
| T040 | 5 |
| T041 | 5 |
| T042 | 2 |
| T043 | 5 |
| T044 | 5 |
| T045 | 5 |
| T046 | 4 |
In: Statistics and Probability
QUESTION 31
A bank that funds a portfolio of assets with higher credit risk than another bank has to have more equity capital if creditors are to be indifferent between lending to either bank.
True
False
QUESTION 32
Subprime assets lost value rapidly between 2007 and 2009. This lowered the value of banks that had exposure to these assets and financial institutions that had exposure to banks that were exposed to subprime risk. Since the assets were hard to value they were not acceptable as collateral. This made banks illiquid and this scared away the suppliers of bank capital. A liquidity crisis turned into a credit crisis for many financial institutions such as WAMU, Wachovia, Lehman and others.
True
False
QUESTION 33
If the yield curve shifts up in (interest rates along the curve all change by the same number of basis points) and the bank is funded with liabilities that have shorter maturities than its assets; the value of the bank will decline.
True
False
QUESTION 34
Use the following data about a fixed coupon corporate bond to answer the following question.
The yield to maturity of the bond is greater than 8%
|
settlement |
11/14/2016 |
||
|
maturity |
11/14/2026 |
||
|
rate |
10% |
||
|
price |
101 |
||
|
redemption |
100 |
||
|
frequency |
2 |
||
|
basis |
0 |
True
False
QUESTION 35
Base your answer to the following question on this document:
https://www.fdic.gov/regulations/safety/manual/section2-1.pdf
Bank capital performs several very important functions. It absorbs losses, promotes public confidence, helps restrict excessive asset growth, and provides protection to depositors and the deposit insurance funds.
True
False
In: Economics
You want to test if children will exhibit a higher number of aggressive acts after watching a violent television show. The number of aggressive acts for the same 19 participants before and after watching the show are as follows:
BEFORE AFTER
4 5
6 6
3 4
2 4
4 7
1 3
0 2
0 1
4 5
1 3
2 2
0 4
2 4
5 3
3 6
3 2
1 3
0 2
5 1
Paired Sample T-test
t df p
Before after -2.559 18 0.010
Note: For all tests, the alternative hypothesis specifies that the measurement one is less than measurement two.
Note: Student's t-test
PRE/POST MEANS
Before 2.42
After 3.53
Note a= .05
In: Statistics and Probability
A pool of participants was randomly divided into FIVE treatment groups. The groups were administered daily doses of vitamin C over a 12-month period. The data in the table represents the number of cold and flu viruses reported by the participant as a function of their vitamin C dosage. Using α = .05, analyze the data using the correct statistical procedure.
|
0mg |
250mg |
500mg |
1000mg |
2000mg |
|
6 |
3 |
3 |
4 |
1 |
|
5 |
4 |
3 |
1 |
0 |
|
3 |
4 |
5 |
2 |
1 |
|
4 |
5 |
6 |
1 |
0 |
|
3 |
4 |
5 |
3 |
2 |
|
2 |
3 |
2 |
1 |
0 |
|
3 |
2 |
4 |
2 |
1 |
|
5 |
4 |
1 |
1 |
1 |
|
3 |
5 |
3 |
2 |
0 |
|
3 |
5 |
4 |
0 |
2 |
Be sure to use a Post Hoc test (I recommend Tukey). Also, click on options and select descriptive statistics when you run your test.
In: Statistics and Probability
A pool of participants was randomly divided into FIVE treatment groups. The groups were administered daily doses of vitamin C over a 12-month period. The data in the table represents the number of cold and flu viruses reported by the participant as a function of their vitamin C dosage. Using a=.05, analyze the data using the correct statistical procedure.
|
0mg |
250mg |
500mg |
1000mg |
2000mg |
|
6 5 3 4 3 2 3 5 3 3 |
3 4 4 5 4 3 2 4 5 5 |
3 3 5 6 5 2 4 1 3 4 |
4 1 2 1 3 1 2 1 2 0 |
1 0 1 0 2 0 1 1 0 2 |
Be sure to use a Post Hoc test (I recommended Tukey). Also, click on options and select descriptive statistics when you run your test.
a. State your null hypothesis.
b. What statistical test would you perform?
c. What is the value of F?
d. Is F significant?
e. How many of the groups are significantly different from the others.
In: Statistics and Probability