Office Problem (Use the attached spreadsheets as a guide)

Property:             Office One, Anytown, U.S.A.

Acquisition date:         December 31, 1999

Purchase Price:           2000 NOI @ 10% CAP RATE

Deal Terms:                65% financed with debt, 9% interest-only, 10-year term

35% equity ownership

Base Year 1999:         Rental Income                   $1,600,000

Escalation Income             $              0

Less:         Janitorial & Cleaning       $   330,000

Labor                    $   215,250

Utilities                         $     60,000

Management Fee         $     80,000

Real Estate Taxes         $     80,000

Assumptions:              Vacancy Rate :        9%

                                   Growth Rates:          Rental      Income            5% Annually

                                                             Janitorial & Cleaning       3% Annually

Utilities                     3% Annually

                                                             Management Fee              3% Annually

In 2001, Labor and Real Estate Taxes escalate by 13.07 and 10%, respectively, and remain at those levels for the remainder of the holding period. Tenant pays the increase over the stated Base Year.

Sell on December 31, 2004

Selling Expenses- 5% of sale price (2005 NOI @ 10% Cap Rate)

Depreciable Basis = 80% of cost (calculate depreciation using straight-line method)

Owner’s Ordinary Tax Rate: 39.6%

Use Post-1997 capital gains & recapture tax rates (20% & 25% respectively)

REQUIRED:

9A) Pro-forma Analysis for both Pre-Tax and After- Tax scenarios

9B) Calculations for:

Adjusted Basis

Capital Gains and Recapture Taxes

Net Sales Proceeds

Break Even Occupancy (2000 & 2004)

Cash-on-Cash Returns (annually)

Gross Rent Multiplier ((2000 & 2004)

Debt Service Coverage (2000 & 2004)

Before and After Tax IRR

Before and After Tax NPV @12%

Please give a brief justification for the correct answer you select:

1. Which of the following is NOT included in 2004’s GDP?

1. The value of a car produced in the United States and exported to England.
2. The profit earned in 2004 from selling a stock that you purchased in 2001.
3. The value of a computer chip that is used in the production of a personal computer.
4. The commission earned by an employment counsellor when she locates a job for a client.

2. Gross National Product is the total market value of

1. All final and intermediate goods and services produced by resources owned by a country in a given year.
2. All final and intermediate goods and services produced in a country in a given year, regardless of who owns the resources.
3. All final goods and services produced in a country in a given year, regardless of who owns the resources.
4. All final goods and services produced by resources owned by a country, regardless of where production takes place.

3. Which of the following is included in both the U.S. GDP and GNP?

1. The value of all cars produced by Ford in Mexico.
2. The value of all cars produced by General Motors in the US.
3. The value of all cars produced by Toyota in the US.
4. The value of cars produced by Nissan in Japan and the US.

4. The value of what Pizza Hut produces in Italy is included in the U.S. ____________ and in the Italian ____________.

1. GDP;GDP
2. GNP;GNP
3. GNP;GDP
4. GDP;GNP

5. The GDP of the U.S. in 2002 was around $10 trillion. This means

1. That the value of output in 2002 was around $10 trillion.
2. That total income in 2002 was around $10 trillion.
3. That total spending in 2002 was around $10 trillion.
4. All of the above

6. In 2004 the change in business inventories is $50 billion and GDP is $160 billion. Final sales in 2004

1. Are $110 billion.
2. Are $200 billion.
3. Are 210 billion.
4. Cannot be determined from this information.

Decision Point: Power Play Idea

One option may be to get your employees at work to each contribute $1,500.

Consider the tactics below. For what "power" reason do you think each tactic could work?

Match each tactic in Tactic to the type of power it best corresponds to in Type of Power.

Type of Power

Legitimate Power

Referent power

Coercive power

Reward power

Expert power

Tactic

You think you can get each of your employees at work to contribute $1,500 from the surprise $5,000 bonuses you are getting ready to distribute next month.

You think you can get each of your employees at work to contribute $1,500 if you tell them they are getting bonuses next month.

You think you can get each of your employees at work to contribute $1,500 just by asking.

You think you can get each of your employees at work to contribute $1,500 because they know you can show them how to turn the donation into a monetary advantage for them.

You think you can get each of your employees at work to contribute $1,500 because you're going to tell them you're contributing $5,000.

Analyse the Case
Shanghai is China’s financial and business hub. In late July 2004, with daytime temperatures reaching 37 degrees Celsius, the city’s electricity consumption surged to a weekly record of 14.35 million kilowatt hours. The city authorities resorted to asking 2,100 businesses to operate at night, and a further 3,000 others to adjust operating hours.
The Chinese government has certainly been working tirelessly to resolve the power crisis. Thermal coal is the principal fuel used to generate electric power in China. In July, Premier Wen Jiabao exhorted, “Railway departments should do their utmost for the transport of coal for electricity generation”. The Ministry of Railways increased train speed and freight loads, and allocated 90% of freight capacity to transport key materials. In the first half of 2004, Chinese railways shipped 480 million tons of coal, up 12.2% over the same period last year.
The Ministry of Communications has also pitched in. It diverted ships from overseas routes to domestic coal transport and approved emergency coal transportation on various roads and waterways. China is the world’s second-biggest coal exporter. In 2003, China exported 93 million tons of coal, including 80.8 million tons of thermal coal. To assure supplies to the electric power industry, the Chinese government has limited coal exports to 80 million tons in 2004. China Coal Import & Export Vice President Zhou Dongzhou predicted that exports of thermal coal would fall to 70 million tons.
In the late 1990s, the Chinese government dissolved the Ministry of Electric Power, and divided its functions between the State Electricity Regulatory Commission (SERC) and the State Power Corporation of China. The State Power Corporation owns five of the six transmission grids (Northwest, North, Northeast, Central, and East) and about half of the national generating capacity. Regulation is necessary to ensure that the State Power Corporation does not abuse its monopoly power.
The SERC regulates all aspects of the electricity industry, except pricing. With regard to electricity pricing, the SERC’s role is to advise the National Development Reform Commission (NDRC).
Some estimate that the nationwide power shortage will soon reach 30 million kilowatts, which is more than double Shanghai’s peak consumption.
With China headed for a power crisis, the government is under pressure to increase electricity prices. In June 2004, following persistent rises in the cost of fuel, the NDRC increased electricity prices by an average of 2.2 fen per kilowatthour in the East, North, Central, and South grids. But, apparently, this increase has not been sufficient. The threat of a power crisis continues.
Analyze the case and answer the following questions.
(a). Explain how the impact of a price increase on electricity consumption depends on the price elasticity of demand. (7.5 Marks)
(b). The price elasticity of the Indian demand for electricity has been estimated to be -0.65 among residential users and -0.45 among industrial users. If these elasticity’s apply to China as well, how will the impact of a price increase be spread between residential as compared with industrial users? (7.5 Marks)

The article "An Alternative Vote: Applying Science to the Teaching of Science"† describes an experiment conducted at the University of British Columbia. A total of 850 engineering students enrolled in a physics course participated in the experiment. Students were randomly assigned to one of two experimental groups. Both groups attended the same lectures for the first 11 weeks of the semester. In the twelfth week, one of the groups was switched to a style of teaching where students were expected to do reading assignments prior to class, and then class time was used to focus on problem solving, discussion, and group work. The second group continued with the traditional lecture approach. At the end of the twelfth week, students were given a test over the course material from that week. The mean test score for students in the new teaching method group was 74, and the mean test score for students in the traditional lecture group was 41. Suppose that the two groups each consisted of 425 students. Also suppose that the standard deviations of test scores for the new teaching method group and the traditional lecture method group were 27 and 20, respectively. Estimate the difference in mean test score for the two teaching methods using a 95% confidence interval. (Use μ_{new method} − μ_{traditional method}. Use technology. Round your answers to three decimal places.)

The confidence interval----------------to conclude that the true mean test score for the new teaching method is greater than the true mean test score for the traditional lecture method because zero  ------------contained in the confidence interval.Give an interpretation of the interval.

Case 2 (Special Order)

While Jurassic World is filled to capacity with tourists most of the year, the theme park experiences a lower number of customers during September and October. This is due to the fact that September and October are “rainy season” in Jurassic World’s location—the island of Isla Nublar, off the coast of Costa Rica.

To celebrate their sponsorship of the Pepsisaurus and the Tostidodon, PepsiCo is interested in holding a 3-day, 2-night corporate retreat for 5,000 of its employees at Jurassic world during September. PepsiCo has told Claire that they would pay Jurassic World $200 per employee. This would provide each employee with three days of park admission, three days of meal and drink vouchers, and two nights of lodging. Additionally, PepsiCo wants Jurassic World to treat its employees to behind-the-scenes tours of the park, which would cost a total of $50,000 to plan and facilitate. Due to the timing of the retreat, Jurassic World has ample capacity to host PepsiCo’s employees.

Claire knows that Jurassic World normally charges $850 per person for a 3-day, 2-night admission, lodging, and meal/drink vacation package. The per person cost for this package is 670, as shown below:

Most of the overhead is the fixed cost of running the theme park, and goes towards marketing, administration, dinosaur bioengineering, customer service, grounds keeping and maintenance, dinosaur food, raptor training, and disaster control. However, $35 is variable with respect to the number of customers in the theme park.

4. Determine the incremental revenue to Jurassic World if Claire accepts PepsiCo’s request. (1 point for the correct answer in the shaded box)

5. Determine the incremental cost to Jurassic World if Claire accepts PepsiCo’s request. (1 point for the correct answer in the shaded box)

6. Should Claire accept PepsiCo’s offer? Circle One. (1 point for the correct answer)

YES                                     NO

Macroeconomic Conditions and Company Performance: RE: Walmart, Neighborhood Market

a) Describe the trends of Net Profit And Total Revenue over the past three years. (Generally Macro effects of increased net profit and revenue)

1.Suppose that the number of customers who enter a supermarket each hour is normally distributed with a mean of 670 and a standard deviation of 180. The supermarket is open 17 hours per day. What is the probability that the total number of customers who enter the supermarket in one day is greater than 10100? (Hint: Calculate the average hourly number of customers necessary to exceed 10100 in one 17-hour day.)

2.Assume that women's weights are normally distributed with a mean given by μ=143 lb and a standard deviation given by σ=29 lb.
(a)  If 1 woman is randomly selected, find the probabity that her weight is between 113 lb and 173 lb

(b)  If 3 women are randomly selected, find the probability that they have a mean weight between 113 lb and 173 lb

(c)  If 88 women are randomly selected, find the probability that they have a mean weight between 113 lb and 173 lb

Quaternary Structure

Quaternary structure represents the three-dimensional (3D) structure of one functional protein.

25. The 3D quaternary structure is facilitated by interactions between which portions of the polypeptide chain? (Select one)

1. Backbone atoms

2. Side chains/R groups

26. List the different types of interactions that can occur at the level of quaternary protein structure.

1. Covalent bonds

2. Interactions between individual amino acid R units that are near to each other in the linear

3. sequence

4. interactions of individual amino acid R groups between different chains

5. Individual amino acid R units that are separated from each other by a large distance along the linear sequence of amino acids.

27. How many polypeptide chains are present in the Quaternary structure of a protein?

28. When proteins have multiple polypeptide chains, what are the individual polypeptide chains called?

29. Find an example of a functional protein that is composed of multiple polypeptide chains (other than the example given in class). Provide the name of the protein below.

30. Draw a representation of the protein named above (in question 29). Be sure to decipher the different subunits.

Q1 What happens to the sample mean and standard error as N increases?

Q2 What are the three different t-tests and describe what is different between them

a. What are the assumptions for each test?

Q3 How is the z-score distinct from the t-statistic?

Q4 I want to know if students in my Math class of 27 students are doing as well as another Math class taught by a different teacher, their class has 23 students. What t-test should I use to determine if there is a statistical significant difference between the two classes?

My class has a mean of 87 while the other class has 92. The standard error of the difference is .55

1. State the null and alternate hypothesis
2. Determine the tstatistic and df
3. Using the ttable, what is the critical region?
4. Is there a statistical significant difference?
5. What is the effect size?

Q5 What are 3 key differences between a one-tailed hypothesis versus a two-tailed hypothesis?

Q6 What is a Type 1 error?

Q7 What is a Type 2 error?

Q8 Name one way to increase power and one way to decrease power