Georgia Movie Company has a capital structure with 43.00% debt and 57.00% equity. The cost of debt for the firm is 8.00%, while the cost of equity is 15.00%. The tax rate facing the firm is 35.00%.

The firm is considering opening a new theater chain in a local college town. The project is expected to cost $12.00 million to initiate in year 0. Georgia Movie expects cash flows in the first year to be $3.45 million, and it also expects cash flows from the movie operation to increase by 4.00% each year going forward. The company wants to examine the project over a 10.00-year period.

What is the NPV of this project? (express answer in millions, so 1,000,000 would be 1.00)

Submit

Answer format: Currency: Round to: 2 decimal places.

Anita Flores has a very successful bake shop in the center of town. She wishes to evaluate the feasibility of investing $95,000 in a new oven that has a five year life. She has estimated the cash inflows associated with the proposal as shown in the following table. The business has a 12% cost of capital.

            Question:

1. Calculate the payback period for the proposed investment.
2. Calculate the internal rate of return (IRR) rounded to the nearest whole percent for the proposed project. (Because we do not use financial calculators, determine the range between the higher and the lower whole percent).
3. Evaluate the acceptability of the proposed investment using NPV and IRR. What do you recommend?

A marketing company wants to know the mean price of new vehicles sold in an up-and‑coming area of town. Marketing strategists takes a simple random sample of 756 cars, and find that the sample has a mean of $27,400 and a standard deviation of $1300.

1. Assume that the population standard deviation is unknown. What is the error of estimate for a 95% confidence interval?

2. Assume that the population standard deviation is known to be $1500. What is the upper bound for a 98% confidence interval?

3. Assume that the population standard deviation is known to be $1500. Find the error of estimate for a 99% confidence interval.

4. Assume that the population standard deviation is known. If the marketing strategists want the 90% confidence interval to be within $50 of the population mean, how many cars at minimum should they sample?

Case Study Up selling and Cross selling

“But I don't want to sell anything—that's not why I became a CSR!” exclaimed Hillary. Hillary was reacting to a recent service department meeting, where her manager told CSRs that they were to begin up selling and cross selling products as a part of taking phone orders starting next week. As an incentive, the top two CSRs in product sales will get a $150 gift certificate to a first-class restaurant in town and be recognized in the monthly newsletter. Unfortunately, it appears that Hillary is not the only CSR who is upset.

1- For this case, create a multi-step strategy to promote this new sales approach with CSRs. You will need to be detailed in your strategy.

2- Evaluate also the manner in which Hillary's organization announced this added responsibility.

The distribution of weights for 12 month old baby girls in the US is approximately normal with mean of 21 and standard deviation of 2.2 pounds.

a. If a 12 month old baby girl weights 23.2 pounds, approximately what weight percentile is she in?

b. If a 12 month old baby girl is in the 16th percentile in weight, estimate her weight.

c. Estimate the weight of a 12 month old girl who is in the 25th percentile by weight?

d. Estimate the weight of a 12 month old girl who is in the 75th percentile?

1. Assume that 100 births are randomly selected and 51 of the births are girls. Use subjective judgment to describe the number of girls as significantly​ high, significantly​ low, or neither significantly low nor significantly high.
2. In a survey of consumers aged 12 and​ older, respondents were asked how many cell phones were in use by the household. ​ (No two respondents were from the same​ household.) Among the​ respondents, 207 answered​ "none," 298 said​ "one," 365 said​ "two," 138 said​ "three," and 104 responded with four or more. A survey respondent is selected at random. Find the probability that​ his/her household has four or more cell phones in use. Is it unlikely for a household to have four or more cell phones in​ use? Consider an event to be unlikely if its probability is less than or equal to 0.05.

5. The table below displays results from experiments with polygraph instruments. Find the positive predictive value for the test. That​is, find the probability that the subject​ lied, given that the test yields a positive result.

Did the Subject Actually​ Lie?

No​ (Did Not​ Lie) Yes​ (Lied) Positive test results 11, 45 Negative test results 33, 12

The probability is?

​(Round to three decimal places as​ needed.)

8. Assume that when adults with smartphones are randomly​ selected, 58​% use them in meetings or classes. If 9 adult smartphone users are randomly​ selected, find the probability that fewer than 4 of them use their smartphones in meetings or classes.

(Round to four decimal places as​ needed.)

9. Based on a​ poll, among adults who regret getting​ tattoos,

21​% say that they were too young when they got their tattoos. Assume that six adults who regret getting tattoos are randomly​ selected and find the indicated probability. Complete parts​ (a) through​ (d) below.

1. Find the probability that none of the selected adults say that they were too young to get tattoos.
2. Find the probability that exactly one of the selected adults says that he or she was too young to get tattoos.
3. Find the probability that the number of selected adults saying they were too young is 0 or 1.
4. If we randomly select 6 adults, is 1 significantly low number who say that they were too young to get​ tattoos?

The Gastineau Girls are building a factory in Massachusetts to produce furry faux fur purses. The factory costs $10 million today (year 0) and will be (straight-line) depreciated to $0 over ten years (years 1-10). At the end of five years, the building will have a market value of $4 million. At the end of ten years, it will have a market value of $1 million. The corporate tax rate is 40%. What is the salvage value associated with selling the building at the end of year 5? What is the salvage value associated with selling the building at the end of year 10? (Assume that, ignoring this transaction, the Gastineau Girl’s fashion empire generates a taxable annual income in excess of $5 million.)

The distribution of weights for 12 month old baby girls in the US is approximately normal with mean u = 21 pounds and standard deviation of 2.2 pounds.

a) if a 12 month old girl weighs 23.2 pounds, approximately what weight percentile is she in?

b) if a 12 month old girl is in the 16th percentile in weight, estimate her weight.

c) Estimate the weight of t 12 month old girl who is in the 25th percentile by weight.

d) Estimate the weight of a 12 month old girl who is in the 75th percentile by weight.

Design a plain concrete mix required for 400mm deep RCC beam to be constructed in New Girls Hostel at GIK Institute (you can assume workability). The specified compressive strength is 32 MPa at 28 days. The standard deviation of the concrete producer is 3.0 MPa. Select nominal maximum-size coarse aggregate from following data

1. Min. distance b/w two reinforcing bar is 40mm
2. Min. distance b/w reinforcing bar and concrete surface (clear cover) is 42mm
3. Thick of slab is 120mm
4. Concrete is not pump-able

The specific gravity of fine aggregate (FA) and coarse aggregate (C.A) are 2.5 and 2.6 respectively. The dry rodded bulk density of C.A. is 1650 kg/m3, and fineness modulus (FM) of FA is 2.70.

C.A. is found to be absorptive to the extent of 5 % and free surface moisture (moisture content) in sand is found to be 5 per cent .Assume any other essential data, concrete should be durable against sulfate and chloride attack.