6. Caretakers, a local nonprofit organization, operates the concession stands for the Newland Baseball Park, home of the Newland Nuggets (a minor league baseball team). Doing so permits Caretakers to raise funds to operate its soup kitchen. Caretakers is concerned with waste in the concessions area. Too many precooked hot dogs are left over after a game. Heinz Canine, Caretakers’ research analyst, feels that hot dog consumption (and other concession sales) can be predicted by the number of advance sale tickets purchased for a game (attendance is usually twice advance sales). Heinz gathers the accompanying data for a sample of 10 days. Run the regression for Heinz and tell him whether his hypothesis is correct. Predict how many hot dogs will be sold if 1,000 advance tickets are sold.

A random survey was conducted at Disneyland to determine how long park guests waited in line for Space Mountain (in minutes). The collected data is provided below:

65 67 54 57 72 64 55

71 64 60 84 54 74 76

62 60 71 59 58 53 63

65 68 69 90 74 59 75

63 51

The posted wait time was listed to be 60 minutes. At the 1% significance level, perform and interpret a hypothesis test to determine if the actual wait time for Space Mountain was more than 60 minutes.

1. Old Faithful, located in Yellowstone National Park, is the world’s most famous geyser. The durations (in minutes) of several of Old Faithful’s eruptions and the times (in minutes) until the next eruption are shown in the table below. Calculate the correlation coefficient and determine the “best fit” line equation using linear regression.

2. Using the equation for the best-fit line from problem 1, determine the following:

1. If the duration of an eruption of Old Faithful is 2.90 minutes, how long until it erupts again?
2. If the time between eruptions is 65 minutes, how long will the eruption last?

3. The US navy has done a lot of research on the optimal time for a scuba diver to be on the bottom of the ocean. The Navy defines the optimal time to be the time at each depth for the best balance between length of work period and decompression time after surfacing. Let x = depth of dive in meters and y = optimal time in hours. A random sample of divers gave the following data (based on information taken from Medical Physiology by A. C. Guyton, M.D.)

Use a 1% level of significance to test the claim that ρ < 0. (I do need you to step through the five steps of hypothesis testing that we have been using in class. You can use SPSS to calculate r and as a check to what you find when you complete the hypothesis test).

You may need to use the appropriate technology to answer this question.

An amusement park studied methods for decreasing the waiting time (minutes) for rides by loading and unloading riders more efficiently. Two alternative loading/unloading methods have been proposed. To account for potential differences due to the type of ride and the possible interaction between the method of loading and unloading and the type of ride, a factorial experiment was designed. Use the following data to test for any significant effect due to the loading and unloading method, the type of ride, and interaction. Use α = 0.05.

Find the value of the test statistic for method of loading and unloading.

Find the p-value for method of loading and unloading. (Round your answer to three decimal places.)

p-value =

State your conclusion about method of loading and unloading.

Because the p-value ≤ α = 0.05, method of loading and unloading is significant.

Because the p-value ≤ α = 0.05, method of loading and unloading is not significant.   

Because the p-value > α = 0.05, method of loading and unloading is significant.

Because the p-value > α = 0.05, method of loading and unloading is not significant.

Find the value of the test statistic for type of ride.

Find the p-value for type of ride. (Round your answer to three decimal places.)

p-value =

State your conclusion about type of ride.

Because the p-value > α = 0.05, type of ride is not significant.

Because the p-value ≤ α = 0.05, type of ride is significant.    

Because the p-value > α = 0.05, type of ride is significant.

Because the p-value ≤ α = 0.05, type of ride is not significant.

Find the value of the test statistic for interaction between method of loading and unloading and type of ride.

Find the p-value for interaction between method of loading and unloading and type of ride. (Round your answer to three decimal places.)

p-value =

State your conclusion about interaction between method of loading and unloading and type of ride.

Because the p-value > α = 0.05, interaction between method of loading and unloading and type of ride is significant.

Because the p-value > α = 0.05, interaction between method of loading and unloading and type of ride is not significant.    

Because the p-value ≤ α = 0.05, interaction between method of loading and unloading and type of ride is not significant.

Because the p-value ≤ α = 0.05, interaction between method of loading and unloading and type of ride is significant.

Windsor Park Dominica is owned and operated by a private company, Windees Ltd. You work as the Facilities Manager of the Park and the CEO of the company has asked you to evaluate whether Windees should embark on the expansion of the facility given there are plans by the Government to host Cricket World Cup in 2020. The project seeks to increase the number of seats by building four new box seating areas for VIPs and an additional 4,000 seats for the general public. Each box seating area is expected to generate $300,500 in incremental annual revenue, while each of the new seats for the general public will generate $2,500 in incremental annual revenue. The incremental expenses associated with the new boxes and seating will amount to 70 percent of the revenues. These expenses include hiring additional personnel to handle concessions, ushering, and security. The new construction will cost $15 million and will be fully depreciated (to a value of zero dollars) on a straight-line basis over the 5-year life of the project. The company will have to invest $1.5 million in additional working capital immediately, but the project will not require any other working capital investments during its life. This working capital will be recovered in the last year of the project. The company’s marginal tax rate is 15 percent.

A. What are the incremental cash flows from this project? In other words determine the free cash flow of the project over its life. (You may use the table below to work out this part of the problem)

B. What is the Net Present Value if the project is assessed at a discount rate of 15% and should the project be accepted and why?

C. What is the Internal Rate of Return of the project and should the project be accepted and why?

D. In addition to the above information, you were told that Windees Ltd. has 5,000 bonds issued and outstanding with a 7.0 percent coupon rate compounded semi-annually. These bonds have 7 years left to maturity and they currently sell for 92 percent of par value. The company has 100,000 shares issued and outstanding with a market value of $3.85 per share. The company’s stock has a beta of 1.20. The expected return on the market is 8.0 percent and the yield on the risk-free asset is currently 6.0 percent. The CEO would like to know a fair rate which can be used to assess its cost of capital. You have therefore been asked to calculate the WACC for Windees Ltd

Harvey is riding his bicycle, no-handed, and at a very fast speed down a park path. Trish, a jogger, accompanied by her dog, Rover on a leash is approaching Harvey from the other direction. Because he knows that he is bigger and faster on his bike, Harvey expects Trish to move out of his way. Unfortunately, Trish does not and as Harvey passes Trish, he side-swipes her knocking her to the ground and injuring her. Rover is inadvertently released when Trish falls, and he runs off into the road.

Monty is driving carefully down the road. Seeing Rover running into his path and wanting to avoid hitting him, Monty swerves driving off the road and onto the sidewalk, damaging his wheel alignment when he jumps the curb.

Grandma Jenkins is babysitting young Elvis, her grandson. Elvis happens to be playing hopscotch on the sidewalk across the street from the park. Fortunately, Monty's veering car stops far short of Elvis, and all is well for the tot (except for anxiety he suffered when he looked up and saw Monty's car heading straight for him). Unfortunately, Grandma Jenkins, observing the car veering off the road and heading straight toward her grandson, suffers a heart attack.

Analyze the following questions based on Negligence -

Is Harvey liable for Grandma Jenkins' heart attack?

Is Harvey liable for the anxiety that Elvis suffered?

Is Harvey liable for the damage to Monty's car?

Is Harvey liable for the injuries suffered by Trish and the loss of Rover?

Tidal WaveTidal Wave

is considering purchasing a water park in

Atlanta comma GeorgiaAtlanta, Georgia​,

for

$ 2 comma 200 comma 000$2,200,000.

The new facility will generate annual net cash inflows of

$ 520 comma 000$520,000

for

tenten

years. Engineers estimate that the facility will remain useful for

tenten

years and have no residual value. The company uses​ straight-line depreciation. Its owners want payback in less than five years and an ARR of

1212​%

or more. Management uses a

1010​%

hurdle rate on investments of this nature.

Read the requirements

LOADING...

.

Requirement 1. Compute the payback​ period, the​ ARR, the​ NPV, and the approximate IRR of this investment.​ (If you use the tables to compute the​ IRR, answer with the closest interest rate shown in the​ tables.) ​(Round the payback period to one decimal​place.)

​(Round the percentage to the nearest tenth​ percent.)

​(Round your answer to the nearest whole​ dollar.)

The IRR​ (internal rate of​ return) is between

▼

16% and 18%

20% and 22%

22% and 24%

18% and 20%

.

Requirement 2. Recommend whether the company should invest in this project.

​Recommendation:

▼

Do not invest in the new facility.

Invest in the new facility.

The marketing department of Deer Park has submitted the following sales forecast for the upcoming fiscal year (all sales are on account):

The selling price of the company’s product is $18 per unit. Management expects to collect 75% of sales in the quarter in which the sales are made, 20% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $72,000.

The company expects to start the first quarter with 1,785 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter’s budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,985 units.

Required:

1. Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole.

2. Calculate the expected cash collections for each quarter of the fiscal year and for the year as a whole.

3. Calculate the required production in units of finished goods for each quarter of the fiscal year and for the year as a whole.

You work for the National Park Service testing a small cannon used to prevent avalanches by shooting down snow overhanging the sides of mountains. In order to determine the range of the cannon, it is necessary to know the speed with which the projectile leaves the cannon (muzzle speed), relative to the ground. The cannon you are testing has a weight of 500 lbs. and shoots a 20-lb. projectile. During lab tests where the cannon is held and cannot move, the muzzle speed is 400 m/s. You want to calculate the projectile's muzzle speed with respect to the ground under field conditions when the cannon is mounted so that it is free to move (recoil) when fired. You take the case where the cannon is fired horizontally using the same shells as in the laboratory.

Jensen Company owns a building in a suburban industrial park. It purchased the building four years ago for $3 million. It is now deciding whether to lease the building or to use it as a distribution center. It could be rented immediately. Given today’s market conditions, rental income of $120,000 per year would be expected. To convert the building to make it useful as a distribution center would require an immediate expenditure of $400,000. Having the distribution center at this location would provide Jensen with $140,000 per year in cost savings, at today’s prices. The cash flows associated with this decision are not very risky, so a real discount rate of just 3% per year is required. For simplicity, assume that: (i) there are no taxes, (ii) the building could be rented or used as a distribution center forever, (iii) ongoing cash flows, including rents and distribution cost savings, would increase with the overall inflation rate, and (iv) all cash flows except the initial $400,000 would occur at year end. (the last assumption implies that one year of inflation would affect the first lease payment and distribution cost saving)

(a) The inflation rate is forecast to be 4% per year. What nominal discount rate is appropriate for this project?

(b) Provide a NPV analysis and a recommendation of how the building should be used.

(c) Is the outcome of your NPV analysis sensitive to changes in the assumed inflation rate? (An intuitive answer without numbers is OK).

(d) Based on the information provided, is it possible to estimate the current market value of the building? If so, provide an estimate.