Tom has a weekly allowance of $24, all of which he spends on pizza and movie rentals. Pizza is $6 a slice and rentals are $3 each.

1. Make a table for slices 0 to 8, which have the following total utility………..0, 20, 36, 48, 58, 66, 72, 76, 78.

Include in the table the movie rentals from 0-8 which have the following total utility…..0, 40, 46, 50, 54, 56, 57, 57, 57

HINT- It is marginal utility that will decide this; include that on the table as well. Oh, no, it is actually marginal utility per dollar that you need. Include that as well in your table and now you are ready to solve. Explain your process.

          PIZZA                                                   MOVIES

Q     T.U.     M.U .   MU/P                          Q   T.U.   M.U.   M.U./P

0      0                                                             0     0

1     20                                                            1    40

2     36                                                            2    46

3     48                                                            3    50

4     58                                                            4    54

5     66                                                            5    56

6     72                                                            6    57

7     76                                                            7    57

8     78                                                            8    57

2. How many movie rentals and pizza slices should Tom consume each week? Show work and explain.
3. What is Tom’s total utility from consuming the pizza and movies? Show.

When NPV and IRR rules result in a conflicting decision regarding acceptance of a project managers could use the MIRR.

It assumes reinvestment of projects' cash flows at the WACC, so it produces results consistent with NPV method.

Let's try to find the MIRR for the project with the following cash flows:

Initial cost of -800 at time zero, CF1 = 400, CF 2 = 570, CF3 = -130.

Here we have two negative cash flows and two positive cash flows.

Step 1: find PV of two costs at the discount rate = WACC of 7%;

Step 2 : find FV of two inflows at 7%;

Step 3: find the discount rate that makes PV from step 1 equal to FV from step 2. That is MIRR.

Make a decision on accepting or rejecting the project by comparing MIRR to the WACC.

Can someone please show me how to get the answer using a financial calculator for example C0= etc... I don't understand the problem using the excel. I need an example with the finance calculator. Thank you

Eleven years ago, you deposited $3,200 into an account. Seven years ago, you added an additional $1,000 to this account. You earned 9.2 percent, compounded annually, for the first 4 years and 5.5 percent, compounded annually, for the last 7 years. How much money do you have in your account today?

$8,666.67

$7,717.29

$7,411.90

$8,708.15

$8,073.91

McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $740 per set and have a variable cost of $340 per set. The company has spent $144,000 for a marketing study that determined the company will sell 56,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 8,900 sets of its high-priced clubs. The high-priced clubs sell at $1,040 and have variable costs of $640. The company will also increase sales of its cheap clubs by 10,400 sets. The cheap clubs sell for $380 and have variable costs of $200 per set. The fixed costs each year will be $9,040,000. The company has also spent $1,050,000 on research and development for the new clubs. The plant and equipment required will cost $28,280,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $1,240,000 that will be returned at the end of the project. The tax rate is 40 percent, and the cost of capital is 10 percent. Suppose you feel that the values are accurate to within only ±10 percent.

What are the best-case and worst-case NPVs? (Hint: The price and variable costs for the two existing sets of clubs are known with certainty; only the sales gained or lost are uncertain.)

One strategy that is used to hedge interest rate risk is to match the modified duration of assets and liabilities. If we hedge the above bond in question 7 with a zero coupon bond, what would be the maturity of said zero.

Income Tax Law - Residency Issue - Australia

Zane has advised you that his employer has discussed an opportunity with him where he could work in its Singapore office for two years, commencing on 1 July 2019. Although Zane is interested in this opportunity to live and work overseas, he is concerned about the Australian Taxation Office (ATO) forming the view that he would retain his Australian residency during this time. In addition, Zane is a cricket enthusiast and his employer has agreed to him taking annual leave from 1 October and 30 November 2020 to return to Australia and attend the ‘World T20’ cricket tournament (held from 18 October to 15 November). Zane anticipates that he will spend the time before and after this event visiting relatives and travelling within Australia. Zane is confident that you will be able to provide him with some clear advice on this issue. He has indicated that he would only be interested in working in Singapore if the ATO considered him to be a non-resident during the two years he would be absent from Australia. You are required to write a letter to Zane outlining the law on this residency issue and how the law would apply to him under the scenario in contemplation (the potential move from Australia to Singapore for work for the period 1/7/2019 to 30/6/2021). Your letter to Zane should refer to relevant sources of law (and any relevant ATO advice). Your letter should also refer to the implications of being a resident or a non-resident during the two years. Zane has some doubts about the implications of the visit to Australia in October and November 2020 in terms of residency. He has asked you for advice on this specific issue and stated that he may consider staying in Singapore if the trip to Australia is likely to increase the chances of him being an Australian resident. As well as providing advice, your letter should set out any additional questions for Zane that are relevant to the residency issue. Finally, your letter should refer to the steps you will take to ensure certainty for Zane as to the ATO view on the residency issue.

On a game show, a contestant has to match a price with a prize they wish to win. The prizes are a sports car and a boat. Of the four different price options, one is the price for the sports car, one is the price for the boat and two prices are incorrect. The contestant chooses one prize and matches it up with one price. Create a probability tree that shows all possible selections the contestant can make and calculate the probability of each of these selections. Lastly, determine what is the theoretical probability that the contestant will win the car, will win the boat, or will not win either prize.

   Once again, as has happened in the past, you are very much in doubt concerning the validity of the known population standard deviations, this time for each camera body, in the yearly sales of the two brands of camera bodies. Therefore, you wish to conduct your study with the knowledge that the population standard deviations are unknown. You collect random samples of the yearly sales of the two camera bodies at populations of stores. The data that has been collected is shown in appendix one below. At both the 10% and 5% levels of significance, are there any differences in the mean sales of the two camera bodies at the two populations of stores? Again, if the software makes it possible, find both 90% and 95% confidence intervals for the difference in the mean sales of the camera bodies between the two populations of stores. Explain the meanings of these intervals. Then, if possible, based upon the procedures you have chosen to address the problem, use the intervals to supplement and test whether there is a difference in the mean sales of the two camera bodies between the two populations of stores.

Appendix One: (Sales of Camera Bodies)

Nikon D5:

131 145 150 156 176 154 138 122 130 235 165 168 221 229 154 155 154 160 154 144 240 143 232 238 130

Canon Model:

      138 140 237 147 170 155 232 228 135 130 161 160 220 229 155 158 150 250 248 246 139 233 133 230 126     

Appendix Two: (Includes the Purchase of a Lens? Y = yes, N = no)

Nikon D5:

      Y N N N Y Y N Y N Y Y N N N N Y Y Y N Y Y N N N N N N Y N N N Y N N N N

Canon Model:

      N N Y Y Y N N Y N Y N N Y Y Y Y N N N N Y N Y N Y N N N Y Y Y Y Y N Y Y

You have now been asked to study the yearly mean sales of cameras of two competing models at stores throughout the United States. You will also study the proportions of cameras sold that include certain lenses at a large store that sells both lenses. The specific questions you will be asked to answer are stated below. In addition, appropriate sample data for the studies you will be accomplishing are given below. Answer the following questions concerning the situations posed.

2) Once again, as has happened in the past, you are very much in doubt concerning the validity of the known population standard deviations, this time for each camera body, in the yearly sales of the two brands of camera bodies. Therefore, you wish to conduct your study with the knowledge that the population standard deviations are unknown. You collect random samples of the yearly sales of the two camera bodies at populations of stores. The data that has been collected is shown in appendix one below. At both the 10% and 5% levels of significance, are there any differences in the mean sales of the two camera bodies at the two populations of stores? Again, if the software makes it possible, find both 90% and 95% confidence intervals for the difference in the mean sales of the camera bodies between the two populations of stores. Explain the meanings of these intervals. Then, if possible, based upon the procedures you have chosen to address the problem, use the intervals to supplement and test whether there is a difference in the mean sales of the two camera bodies between the two populations of stores.

Nikon D5:

131     145     150     156     176     154     138     122     130     235     165     168     221     229     154     155     154     160     154      144     240     143     232     238     130

Canon Model:

      138     140     237     147     170     155     232     228     135     130     161     160     220     229     155     158     150     250     248      246     139     233     133     230     126    

(a) How many ways are there to order the 26 letters of the alphabet so that no two of the vowels a, e, i, o,u appear consecutively and the last letter in the ordering is not a vowel?

Hint: Every vowel appears to the left of a consonant.

(b) How many ways are there to order the 26 letters of the alphabet so that there are at least two consonants

immediately following each vowel?

(c) In how many different ways can 2n students be paired up?

(d) Two n-digit sequences of digits 0,1,...,9 are said to be of the same type if the digits of one are a permutation of the digits of the other. For n D 8, for example, the sequences 03088929 and 00238899are the same type. How many types of n-digit sequences are there?