Kansas Co. wants to invest in a project in China. It would require an initial investment of 5,000,000 yuan. It is expected to generate cash flows of 7,000,000 yuan at the end of one year. The spot rate of the yuan is $.12, and Kansas thinks this exchange rate is the best forecast of the future. However, there are 2 forms of country risk.

First, there is a 50% chance that the Chinese government will require that the yuan cash flows earned by Kansas at the end of one year be reinvested in China for TWO year before it can be remitted (so that cash would not be remitted until 3 years from today). In this case, Kansas would earn 8% after taxes on a bank deposit in China during that second year.

Second, there is a 40% chance that the Chinese government will impose a special remittance tax of 500,000 yuan at the time that Kansas Co. remits cash flows earned in China back to the U.S.

The two forms of country risk are independent. The required rate of return on this project is 20%. There is no salvage value. What is the expected value of the project’s net present value?

Case Problem 3. County Beverage Drive-Thru

County Beverage Drive-Thru, Inc., operates a chain of beverage supply stores in northern Illinois. Each store has a single service lane; cars enter at one end of the store and exit at the other end. Customers pick up soft drinks, beer, snacks, and party supplies without getting out of their cars. When a new customer arrives at the store, the customer waits until the preceding customer’s order is complete and then drives into the store for service.

Typically, three employees operate each store during peak periods; two clerks take and fill orders, and a third clerk serves as cashier and store supervisor. County Beverage is considering a revised store design in which computerized order-taking and payment are integrated with specialized warehousing equipment. Management hopes that the new design will permit operating each store with one clerk. To determine whether the new design is beneficial, management decided to build a new store using the revised design.

County Beverage’s new store will be located near a major shopping center. Based on experience at other locations, management believes that during the peak late afternoon and evening hours, the time between arrivals will follow an exponential probability distribution with a mean of six minutes. These peak hours are the most critical time period for the company; most of their profit is generated during these peak hours.

An extensive study of times required to fill orders with a single clerk led to the following probability distribution of service times:

In case customer waiting times prove to be too long with just a single clerk, County Beverage’s management is considering two design alternatives: (1) adding a second clerk to assist the first clerk with bagging, taking orders, and related tasks (still serving one car at a time as a single-server system), or (2) enlarging the drive-through area so that two cars can be served at once (operating as a two-server system). With the two-server option, service times are expected to be the same for each server. With the second clerk teaming with the first clerk in the single server design, service times will be reduced and would be given by the probability distribution in the following table.

County Beverage’s management would like you to develop a spreadsheet simulation model of the new system and use it to compare the operation of the system using the following three designs:

Management is especially concerned with how long customers have to wait for service. As a guideline, management requires the average waiting time to be less than 1.5 minutes.

Managerial Report

Prepare a report that discusses the general development of the spreadsheet simulation model, and make any recommendations that you have regarding the best store design and staffing plan for County Beverage. One additional consideration is that the design allowing for a two-server system will cost an additional $10,000 to build.

Construct a separate simulation model to evaluate the performance of each design alternative.

Execute the simulation for 360 minutes (representing the peak hours of 4 p.m. to 10 p.m). You may assume that the system begins empty at 4 p.m You may want to make more than one run with each alternative. Record relevant summary statistics over the simulation runs and use this information to support your final recommendation.

A random sample of 42 mechanical gears has been collected, and the measurements of
Gear-Diameter (mm) are found below:
130 131 132 130.5 130 130.2 130.7 130 131.2 133
130 130 131 132 133 133 132 131 312.5 131.5
131.2 132.5 130.2 129.5 131 130 130.2 131.5 131.4 131.6
130.6 130.5 131.1 130 13 130 131 130 130 132
131.2 132
(a) Construct a 94% two-bounds confidence interval on the diameter.
(b) Construct a 94% lower confidence bound on the diameter.

please solve manually

The number of chromosomes in a diploid sexual species is 14. What is the exact probability that an individual of this species could produce by meiosis a gamete that includes all 7 chromosomes that the individual itself inherited from it's mother while excluding all 7 chromosomes inherited from its father?

A) Zero

B) 7/14 = 50%

C) 1/2 ⁷

D) 7 ^1/2

E) 1/7 (1 out of seven gametes) = 14%

F) There is no answer to this question

Q.4 suppose a firm is expected to increase its dividends by 10% in one year,8% in two years and 5% in three years. after that dividend are expected to increase at a rate of 3% per year. if the last dividend was &10 and the required return is 15%, what is the theoretical price of the stock today? show your calculations?

One unit of A is made of three units of B, one unit of C, and two units of D. B is composed of two units of E and one unit of D. C is made of one unit of B and two units of E. E is made of one unit of F. Items B, C, E, and F have one-week lead times; A and D have lead times of two weeks. Assume that lot-for-lot (L4L) lot sizing is used for Items A, B, and F; lots of size 55, 55, and 200 are used for Items C, D, and E, respectively. Items C, E, and F have on-hand (beginning) inventories of 10, 50, and 160, respectively; all other items have zero beginning inventory. We are scheduled to receive 10 units of A in Week 2, 60 units of E in Week 1, and also 50 units of F in Week 1. There are no other scheduled receipts. If 32 units of A are required in Week 8, use the low-level-coded bill-of-materials to find the necessary planned-order releases for all components. Develop an MRP planning schedule showing gross and net requirements and order release and order receipt dates.

Yp(Potential Output) = 10L^½ K^½; W = 10 + 1Ls; W = 60 – 1Ld( W = nominal wage rate) ; Total demand for goods and services1 (planned consumption + gross investment + planned government purchases + net exports) = 1600 – 10P ; short-run aggregate supply: Y = -400 + 10P; C = 60 + 0.9[Y – Tx] – 1P; Net Exports = 0; Government purchases = 50; Last year’s capital stock = 100; gross investment = 50; Net investment = 44; retained earnings = 10; average values for Ufrictional = 5%; Ustructural = 13%; Ucycled = 2%; Tax = 0 always.

5. The economy is initially in long run equilibrium.

What is the price level? __________

6. What is the unemployment rate in #5? _________

7. What is the value for consumption in #5? _______

8. Then government purchases increase and the AD1

curve becomes AD2 = 1800 – 10P. What is the

unemployment rate when the economy moves to its

new short run equilibrium? __________

9. What is the new value for G? ______________

10. Eventually, wages and prices rise and the economy returns to its long run equilibrium. What will

be the value for the nominal wage rate in this new long run equilibrium? __________

11. What is the value for total business saving in this economy? __________

What is value of standard deviation of the 3-year moving average of Germany’s GDP from 1951 to 1982? (Note: You should compare this value with the standard deviation of the original German GDP time series).

4. We would prefer to estimate the number of books in a college library without counting them. Data are collected from colleges across Books (in millions)

Using Stepwise regression, show how each of the three factors affects the number of volumes in a college library.

3. Assume that the time elapsed between customers entering a retail shop is exponentially decreasing by 15%. How long will the average customer continue to come before the shop runs out of business.

4. .The weight of the fabled Cobrafish is normally distributed with a mean of 45 kg. and a standard deviation of 6 kg. Approximately what percentage of Cobrafish (rounded to two decimal places) weigh between 30 kg. and 49 kg? Note: You must find the corresponding z-scores by hand, showing your work

5. A radar unit is used to measure speeds of cars on a motorway. The speeds are normally distributed with a mean of 90 km/hr and a standard deviation of 10 km/hr. What is the probability that a car picked at random is travelling less than 105 km/hr. Write your answer as a percentage.