Metal Cabinet, Inc. produces two types of filing cabinets. Material costs for the two drawer model are $75. The four-drawer model contains $130 of material.

Their estimated monthly conversion costs follow:

9.1 How much should the two drawer cabinet be priced if markup is 50% of cost?

1. What is trade dress?
2. What is the USDA? What is the purpose of the USDA?
3. Define Bait and Switch?
4. Describe an environmental impact statement and identify when one is needed?
5. Explain how environmental laws regulate the use of toxic substances and the disposal of hazardous
wastes?
6. Describe the enforcement of federal antitrust laws?
7. Explain how the lawfulness of mergers is examined under Section 7 of the Clayton Act?
8. Explain the liability of bailees for lost damaged, or destroyed goods?
9. Define personal property?
10. Describe the zoning laws.

Business Law questions.

You are considering replacing a current machine with a new machine that has an 8-year life. The purchase price of the new machine is $635,000 and transportation/installation expenses will be $100,000. This new machine falls into the 5-year MACRS classification for depreciation purposes. At the end of that 8-year life of the new machine, it is expected to have a market value of $260,000. The current equipment has been in use for 7 years and has an expected remaining life of 8 years. Seven years ago, you purchased the equipment for a total of $480,000. This current equipment is being depreciated on a straight-line basis to an expected zero salvage value for accounting purposes. You estimate the market value of the equipment to be $264,000 currently and $127,000 at the end of 8 years. You estimate that inventories will increase by $58,000 and accounts receivable will increase by $65,000 with the purchase of the new equipment. If you continue to operate the old machine, you estimate that you can produce and sell 124,000 units per year at the current price of $6 per unit. Variable costs currently associated with running the old machine are $1.93 per unit, and fixed costs associated with the old machine are currently $118,500 annually. If you switch to the new machine, you anticipate that you can produce and sell 142,500 units at a beginning price of $8 per unit. Variable costs associated with running the new machine are estimated to be $2.75 per unit to start, while estimated fixed costs are $130,425 in the first year. Assume that the unit selling price, annual variable costs, and annual fixed costs for both the current and new machine under consideration will grow at a 1.0% annual rate of inflation beginning in year two of your analysis. Depreciation for Tax Purposes: Modified Accelerated Cost Recovery System (MACRS) Ownership Year 5-year 1 20% 2 32% 3 19% 4 11.5% 5 11.5% 6 6% Your firm is financed with debt and common equity. Debt is comprised of a single issue of 2,000 bonds that are currently trading at a price of $1,025 each. The bonds were issued exactly two years ago today, each with a par value of $1,000, a coupon rate of 4.5%, and total maturity of 30 years. Interest coupons are paid on a semi-annual basis. For common equity, there are currently 253,000 shares outstanding, trading at a price of $13.75 each. Dividends are paid on an annual basis, and the last dividend paid was $1.70 per share. Dividends are expected to grow at a rate of 3% for the foreseeable future. You have chosen to use an historical market risk premium estimate of 6%. It is your firm’s policy to use the current yield of 0.50% on 5-year T-bonds as your proxy for the nominal risk-free rate of return. Finally, you believe the estimated levered equity beta of your firm is 2.40. You determine that the current market value of your firm’s capital structure approximates the target capital structure and that the risk of the project under consideration is comparable to the overall risk level of the firm’s existing asset mix. Also, if there is more than one way to estimate a variable, it is your firm’s policy to use the average of the estimations. Assume that your firm’s marginal tax rate is 50%.   Base Case Question 1.1 (20 points): Estimate the weighted average cost of capital (WACC) that should be used in analyzing the decision to replace the old piece of equipment with the new one under consideration. Base Case Question 1.2 (40 points): Should you replace the old piece of equipment with the new one under consideration? Substantiate your answer using NPV, IRR, and MIRR.

1. In a study examining whether taking a statistics course influences students’ reasoning skill, a researcher first gave a reasoning task to 5 students who have never taken a statistics course, and then the students took a brief statistics lecture which lasted 3 hours. After the lecture, the same five students took the reasoning task again. Their performance scores are summarized in the table below.

Perform an appropriate statistical test and provide your conclusion on whether or not their reasoning performance are different before and after taking the STATS lecture.

2. In the above (#9), the same 5 students took the test twice, before and after the lecture. Reanalyze the above data as the data obtained from two sets of independent samples. Now please perform an appropriate statistical test to compare the means, pretending that two different (independent) groups of five people took the same test, one before and one after the lecture.

Consider the following 6 months of returns for 2 stocks and a portfolio of those 2​ stocks:

The portfolio is composed of​ 50% of Stock A and​ 50% of Stock B.  

a. What is the expected return and standard deviation of returns for each of the two​ stocks?

b. What is the expected return and standard deviation of returns for the​ portfolio?

c. Is the portfolio more or less risky than the two​ stocks? Why?

a. What is the expected return and standard deviation of returns for each of the two​ stocks?

The expected return of Stock A is___?  (Round to one decimal​ place.)

1. You are excited because your new card game has arrived. This game consists of 40 unique cards. What is the number of ordered samples of 4 cards that can be drawn without replacement from the new deck of cards?

2. You are arranging flowers for a party. You have four white flowers, three yellow flowers, and two lavender flowers. How many different ways can these different colors be arranged?

3. You have a brown paper bag that contains two black balls and two red balls. Two balls are selected at random without replacement. You are told that at least one of the balls is red. What is the probability that the other ball you selected is also red? Give your answer to four decimal places.

4. You have a brown paper bag that contains 10 burnt orange balls and 10 navy blue balls (these are UVA’s colors where I went to graduate school, undergraduate was at UGA, thus I am a dawg). The balls are drawn at random, one at a time without replacement. Find the probability that the fourth burnt orange ball is the seventh ball drawn. Give your answer to four decimal places.

5 In a meadow there are 50 butterflies of which 10 have been tagged. An entomologist random catches 7 butterflies one at a time without replacement. What is the probability that exactly 2 tagged butterflies will be caught? Give your answer to four decimal places.

Answer the following questions and use Excel or this document to show your work.

1. Consider the following results for two samples randomly taken from two normal populations with equal variances.

a. Develop a 95% confidence interval for the difference between the two population means.

b. Is there conclusive evidence that one population has a larger mean? Explain.

JL.54 Altec Lansing makes a variety of speakers for computer systems and they are looking to adopt Lean Production principles into their main production facility. This production facility operates 320 days per year one of their bestselling speaker systems has annual demand of 32,000 units. They can produce up to 950 of these systems each day. It costs $14.52 to set up a work cell to produce this system. The cost of each system is $44 and annual holding costs are $11.80 per unit. Setup labor cost is $11 per hour.

What is the optimal size of the production run for this system? (Display your answer to the nearest whole number).
   

Given your answer to the previous question, how many production runs will be required each year in order to meet the annual demand? (Round your answer UP to the next whole number.)
   

How much time (in minutes) does it take to set up a work cell? (Display your answer to the nearest whole number.)
  

The large retailers who are wholesale customers of Altec Lansing are pressing the company to sell this and other speaker systems in much smaller quantities to support their JIT distribution models. For example, for this particular speaker system wholesale customers want to purchase in lots of 170. In order to meet this requirement, what would be the required setup time (in minutes) to make this order quantity an optimal production run quantity? (Display your answer to the nearest whole number.)
  

The following data set shows the ages of the Best Actress and Best Actor award at a given awards show for various years:

Using a Sign Test, test the claim that there is no median difference between the ages of Best Actress and Best Actor award winners.

Find the null and alternative hypothesis.

H0: ______________

H1: _________________

If we consider + to represent when the female was older than the male, then how many of each sign is there?

Positive Signs: _____________

Negative Signs: ________________

Total Signs: _________________

What is the p-value? ____________ (Round to three decimal places.)

At a 0.025 significance, what is the conclusion about the null? __________________

2. What is the conclusion about the claim? _______________________

Let's now perform a mean-matched pairs test to test the claim that there is no mean difference between the age of males and females. For the context of this problem, d=x2−x1 where the first data set represents actress (female) ages and the second data set represents male (actor) ages. We'll continue to use a significance of 0.025. You believe the population of difference scores is normally distributed, but you do not know the standard deviation.

H0: μd=0

H1:μd≠0

What is the critical value for this test? t=± ____________ (Round to three decimal places.)

What is the test statistic for this sample? t= ____________ (Round to three decimal places.)

What is the p-value?____________ (Round to three decimal places.)

Conclusion about the null: ______________

Conclusion about the claim: _________________

How were these two tests similar? __________________________

How were these two tests different? _______________________

(2) You need a word

­

processing package for the personal computer in your office. Because your employer will pay for the package you are not concerned about the

cost, but you would like a package which is as easy to use as possible and which also has a wide range of functions such as a thesaurus, spell checker and graphics.

After discussing the matter with a friend who is something of an expert in this field, you identify seven potential packages and allocate values to them to reflect their

ease of use and available facilities. These values are shown below (0 = worst, 100 = best).

(a) Plot each package's value for 'ease of use' and 'facilities available' on a graph and hence determine the packages which lie on the efficient frontier.

(b) Suppose that you judge that a switch from a package with the least facilities available to one with the most facilities is only 60% as attractive as a switch from a

package which is the least easy to use to one which is the most easy to use. Assuming that mutual preference independence exists between the two attributes,

which package should you choose?

(c) After some reflection you realize that the extra facilities available on a package will be of little value to you if they are going to be difficult to use. What does this imply about your method of analysis in (b)?

Solve the question in excel or on paper.