1) Identical twins Anna and Hannah visit you at the optical clinic. Anna, whose eyes can easily focus on distant objects (her far point), is also able to focus on objects within 20 cm of her eyes (her near point). Assuming the diameter and, hence, the distance between the cornea and retina, of Anna's eye is 20 mm, what is the range (in diopters) of Anna's vision? The limits of this range correspond to the total refractive power of her eyes at their far point and and the refractive power at their near point.

a) from 50 to 50.5 diopters

b) from 50 to 55 diopters

c) from 50 to 60 diopters

d) from 0 to 5 diopters

2) Hannah's eyes have the same range as her sister's, with the same focal power for her cornea (50 diopters) and for her variable lens (5 diopters), but Hannah suffers from myopia. She cannot focus on any object that lies more than 0.7 meters from her eyes since they are slightly longer -- the cornea to retina distance is larger -- than her sister's eyes. Considering this new far point, what is the diameter of Hannah's eyes (in millimeters, to the nearest tenth of a millimeter) assuming Anna's eye diameter was ideally, again, 20.0 mm? Hint: the focal power of the cornea remains the same for Hannah as for Anna for focusing distant objects, but the farthest Hannah can see (object distance) changes from infinity to 0.7 meters.  

3) Assuming, instead, that the diameters of Hannah's myopic eyes were 20.4 mm, but, again, that Hannah's eyes share the same focal powers for her cornea and lens as Anna's, what would be Hannah's near point (to the nearest tenth of a cm, in cm) if Anna's, again, is 20 cm?

4) Now assuming Anna's far point was found to be 0.8 m (i.e., her eyes can't focus on any object more than 0.8 m away), what power corrective lenses would you prescribe to Hannah so that, when wearing these lenses, her visual range was the same as Anna's (from a near point of 20 cm to a far point of infinity? Give your answer in units of diopters, to the nearest tenth of a diopter, with the correct sign.

5) One treatment of cataracts is to surgically remove the variable lens of the eye. If we assume that the cornea's refractive power focuses objects at infinite distances onto the retina of a person who has had this surgery, what power correcting lenses would they need to be able to read text at a 21-cm near-point distance? Again, give your answer in units of diopters, to the nearest tenth of a diopter and with the correct sign.

Last year, two friends Gear and Nogear invested in residential apartments. Each invested $1m of their own money (their net wealth).

Apartments cost $1m last year and they earned net rents of $30k pa over the last year. Net rents are calculated as rent revenues less the costs of renting such as property maintenance, land tax and council rates. However, interest expense and personal income taxes are not deducted from net rents.

Gear and Nogear funded their purchases in different ways:

Gear used $1m of her own money and borrowed $4m from the bank in the form of an interest-only loan with an interest rate of 5% pa to buy 5 apartments.

Nogear used $1m of his own money to buy one apartment. He has no mortgage loan on his property.

Both Gear and Nogear also work in high-paying jobs and are subject personal marginal tax rates of 45%. Assume that capital gains are taxed at the full 45% personal rate when the asset is sold.

Over the past year, house prices increased by 4%, before subtracting capital gains tax (CGT).

Gear and Nogear both sold their houses and Gear paid back all debt.

Which of the below statements about the past year is NOT correct? Note that m stands for million (10^6) and k stands for kilo (10^3).

Select one:

a. Gear's debt-to-assets ratio one year ago was 80% while Nogear's was zero.

b. Gear's net rent before tax was 150k while Nogear's was 30k.

c. Gear's capital gains before tax were 200k while Nogear's was 40k.

d. Gear's interest expense before tax was 250k while Nogear's was zero.

e. Gear's income and capital gains after tax due to the investment properties (ignoring opportunity costs) was 82.5k while Nogear's was 38.5k.

Last year, two friends Gear and Nogear invested in residential apartments. Each invested $1m of their own money (their net wealth).

Apartments cost $1m last year and they earned net rents of $30k pa over the last year. Net rents are calculated as rent revenues less the costs of renting such as property maintenance, land tax and council rates. However, interest expense and personal income taxes are not deducted from net rents.

Gear and Nogear funded their purchases in different ways:

Gear used $1m of her own money and borrowed $4m from the bank in the form of an interest-only loan with an interest rate of 5% pa to buy 5 apartments.

Nogear used $1m of his own money to buy one apartment. He has no mortgage loan on his property.

Both Gear and Nogear also work in high-paying jobs and are subject personal marginal tax rates of 45%. Assume that capital gains are taxed at the full 45% personal rate when the asset is sold.

Over the past year, house prices increased by 4%, before subtracting capital gains tax (CGT).

Gear and Nogear both sold their houses and Gear paid back all debt.

Which of the below statements about the past year is NOT correct? Note that m stands for million (10^6) and k stands for kilo (10^3).

Select one:

a. Gear's debt-to-assets ratio one year ago was 80% while Nogear's was zero.

b. Gear's net rent before tax was 150k while Nogear's was 30k.

c. Gear's capital gains before tax were 200k while Nogear's was 40k.

d. Gear's interest expense before tax was 250k while Nogear's was zero.

e. Gear's income and capital gains after tax due to the investment properties (ignoring opportunity costs) was 82.5k while Nogear's was 38.5k.

1. (Public Goods Game) Suppose that there are two people, Agent 1 and Agent 2 in a town.
Assume that there is no street light in the town. To build a street light, someone should pay
costs and once it is built, everyone can enjoy the benefit of street light as there is no way to
force not to use it. Once the street light is build, while Agent 1 has 10 payoff, Agent 2 has 5
payoff. If only one person paid for it, the cost of building a street light is 6. If both agents
paid, each person needs to pay only half of it, thus the cost in this case is 3. As a result, the
payoff matrix of this public goods game is as follows.

(a) What are BR1(Pay) and BR1(Not Pay)? And what are BR2(Pay) and BR2(Not Pay)?
(b) What is the Nash Equilibrium (NE)?
(c) Suppose that there are many agents who have the same preference of Agent 2. In that
case, what would be the NE? Please explain this with Free Rider problem.

1. The following data relating to units shipped and total shipping expense have been assembled by XYZ Company, a wholesaler of large, custom-built air-conditioning units for commercial buildings:

Required:

1. Using the high-low method, estimate a cost formula for shipping expense.
2. Using the cost formula you derived above, what amount of total shipping expense would you expect to be incurred if 10 units will be shipped?
3. What factors, other than the number of units shipped, do think are likely to affect the company's total shipping expense?

2. Because of Covid-19, some companies around the world have chosen to minimize fixed capacity costs. However, every company has some costs to which it is committed. Distinguish between committed fixed costs and discretionary fixed costs. Give three examples for each.

Many families in California are using backyard structures for home offices, art studios, and hobby areas as well as for additional storage. Suppose that the mean price for a customized wooden, shingled backyard structure is . Assume that the standard deviation is .

a. What is the  -score for a backyard structure costing  (to 2 decimals)? If your answer is negative, enter minus (-) sign.

b. What is the  -score for a backyard structure costing  (to 2 decimals)?

c. Interpret the  -scores in parts (a) and (b). Comment on whether either should be considered an outlier.

is  standard deviations - Select your answer -belowaboveItem 4 the mean.

is  standard deviations - Select your answer -belowaboveItem 6 the mean.

- Select your answer -The z -score in part (a) is an outlierThe z -score in part (b) is an outlierBoth are outliersNeither is an outlierItem 7

d. If the cost for a backyard shed-office combination built in Albany, California, is , should this structure be considered an outlier? Explain.

is    (to 2 decimals) standard deviations  - Select your answer -abovebelowItem 9 the mean. This cost  - Select your answer -isis notItem 10 an outlier.

USE 2018 TAX RULES TO ANSWER THE FOLLOWING:

Jane suffers from a degenerative spinal disorder. Her physician said that swimming could help prevent the onset of permanent paralysis and recommended the installation of a swimming pool at her residence for her use. Jane’s residence had a market value of approximately $500,000 before the swimming pool was installed. The swimming pool was built, and an appraiser estimated that the value of Jane’s home increased by $98,000 because of the addition.

The pool cost $194,000, and Jane claimed a medical expense deduction of $96,000 ($194,000 − $98,000) on her tax return. Upon audit of the return, the IRS determined that an adequate pool should have cost $70,000 and would increase the value of her home by only $31,000. Thus, the IRS claims that Jane is entitled to a deduction of only $39,000 ($70,000 − $31,000).

Is there any ceiling limitation on the amount deductible as a medical expense? Explain.

Can capital expenditures be deductible as medical expenses? Explain.

What is the significance of a “minimum adequate facility”? Should aesthetic or architectural qualities be considered in the determination? Why or why not?

In 1988, Pearl Limited completed the construction of a building at a cost of $1.76 million; it occupied the building in January 1989. It was estimated that the building would have a useful life of 40 years and a residual value of $400,000.

Early in 1999, an addition to the building was constructed at a cost of $760,000. At that time, no changes were expected in its useful life, but the residual value with the addition was estimated to increase by $190,000. The addition would not be of economic use to the company beyond the life of the original building.

In 2017, as a result of a thorough review of its depreciation policies, company management determined that the building’s original useful life should have been estimated at 30 years. The neighbourhood where the building is has been going through a renewal, with older buildings being torn down and new ones being built. Because of this, it is now expected that the company’s building and addition are unlikely to have any residual value at the end of the 30-year period. Pearl Limited follows IFRS for its financial statements.

Calculate the annual depreciation that was charged from 1999 through 2016.

Annual depreciation, 1999 through 2016

(Steven’s Bikes began operations in April 2017 and had the following transactions.

Owner invested $120,000 cash and a truck worth $36,000 in exchange for stock.

Paid $84,000 cash for 6 months’ rent.

Purchased $300,000 of bicycle inventory on credit.

Sold bicycles for cash of $507,000. The cost of the bikes sold was $180,000.

Sold and invoiced bicycles to a client for $95,400. The cost of the bikes sold was $48,000.

Paid $90,000 cash for an advertising campaign in connection with Tour de France. The campaign will run over the next two of months.   

Paid $24,000 in cash for supplies to have on hand for bike repairs.

Collected $60,000 from accounts receivable.

Paid for bikes purchased on credit in Transaction c above.

Paid cash dividends of $3,000.

Received $6,000 cash from a customer as a deposit for a custom bicycle to be built.

Required: Record each transaction a) through k) in the financial statements effects template, below.

Washington County’s Board of Representatives is considering the construction of a longer runway at the county airport. Currently, the airport can handle only private aircraft and small commuter jets. A new, long runway would enable the airport to handle the midsize jets used on many domestic flights. Data pertinent to the board’s decision appear below.

In addition to the preceding data, two other facts are relevant to the decision. First, a longer runway will require a new snowplow, which will cost $155,000. The old snowplow could be sold now for $15,500. The new, larger plow will cost $13,000 more in annual operating costs. Second, the County Board of Representatives believes that the proposed long runway, and the major jet service it will bring to the county, will increase economic activity in the community. The board projects that the increased economic activity will result in $66,000 per year in additional tax revenue for the county.

In analyzing the runway proposal, the board has decided to use a 10-year time horizon. The county’s hurdle rate for capital projects is 6 percent.

Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.)

Required:

1. Compute the initial cost of the investment in the long runway.

2. Compute the annual net cost or benefit from the runway.

3-a. Determine the IRR on the proposed long runway. (Round your answer to the nearest whole percent.)

3-b. Should it be built considering IRR?