Better Mousetraps has developed a new trap. It can go into production for an initial investment in equipment of $6.6 million. The equipment will be depreciated straight line over 6 years to a value of zero, but in fact it can be sold after 6 years for $643,000. The firm believes that working capital at each date must be maintained at a level of 15% of next year’s forecast sales. The firm estimates production costs equal to $1.90 per trap and believes that the traps can be sold for $6 each. Sales forecasts are given in the following table. The project will come to an end in 6 years, when the trap becomes technologically obsolete. The firm’s tax bracket is 35%, and the required rate of return on the project is 12%. Use the MACRS depreciation schedule.

A) . What is project NPV? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer in millions rounded to 4 decimal places.)

B) By how much would NPV increase if the firm depreciated its investment using the 5-year MACRS schedule? (Do not round intermediate calculations. Enter your answer in whole dollars not in millions.)

1. Paste SPSS output. (7 pts)
2. Write an APA-style Results section based on your analysis. Include your scatterplot as an APA-style figure as demonstrated in the APA writing presentation. (Results = 8 pts; Graph = 5 pts)

Better Mousetraps has developed a new trap. It can go into production for an initial investment in equipment of $5.7 million. The equipment will be depreciated straight line over 6 years to a value of zero, but in fact it can be sold after 6 years for $671,000. The firm believes that working capital at each date must be maintained at a level of 10% of next year’s forecast sales. The firm estimates production costs equal to $1.80 per trap and believes that the traps can be sold for $7 each. Sales forecasts are given in the following table. The project will come to an end in 6 years, when the trap becomes technologically obsolete. The firm’s tax bracket is 35%, and the required rate of return on the project is 8%. Use the MACRS depreciation schedule. Year: 0 1 2 3 4 5 6 Thereafter Sales (millions of traps) 0 0.4 0.6 0.7 0.7 0.5 0.3 0 a. What is project NPV? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer in millions rounded to 4 decimal places.) b. By how much would NPV increase if the firm depreciated its investment using the 5-year MACRS schedule? (Do not round intermediate calculations. Enter your answer in whole dollars not in millions

Perth Corporation has two operating divisions, a casino and a hotel. The two divisions meet the requirements for segment disclosures. Before transactions between the two divisions are considered, revenues and costs are as follows:

The casino and the hotel have a joint marketing arrangement by which the hotel gives coupons redeemable at casino slot machines and the casino gives discount coupons good for stays at the hotel. The value of the coupons for the slot machines redeemed during the past year totaled $5,000,000. The discount coupons redeemed at the hotel totaled $1,000,000. As of the end of the year, all coupons for the current year expired.

Required:

What are the operating profits for each division considering the effects of the costs arising from the joint marketing agreement? (Enter your answers in thousands.)

Operating Profits

casino

hotel

Comparing occupancy for two hotels

Sunrise Suites and Nationwide Inns operate competing hotel chains across the region. Hotel capacity information for both hotels is as follows:

Information on the number of guests for each hotel and the average length of visit for June were as follows:

a. Determine the guest nights for each hotel in June. Guest Nights Sunrise Suites: Nationwide Inns:

b. Determine the room nights for each hotel in June. Room Nights Sunrise Suites: Nationwide Inns:

c. Determine the occupancy rate of each hotel in June. Occupancy Rate Sunrise Suites % Nationwide Inns

We have provided you the Hotel database to be used with SQLite DBMS. You should use this database in SQLite to extract the necessary information as per the following query requirements.

The sqlite script is based on the following relational schema:

•Hotel (hotelNo, hotelName, city)

• Room (roomNo, hotelNo, type, price)

• Booking (hotelNo, guestNo, dateFrom, dateTo, roomNo)

•Guest (guestNo, guestName, guestAddress)

Note the following details of the hotel database;

•Hotel contains hotel details and hotelNo is the primary key;

•Room contains room details for each hotel and (roomNo, hotelNo) forms the primary key;

•Booking contains details of bookings and (hotelNo,guestNo,dateFrom) forms the primary key;

•Guest contains guest details and guestNo is the primary key.

Write an SQLite script for querying data.

•List hotelNo, type and price of each double or deluxe room with a price more than $99.

•List hotelNo who have more than 2 double rooms.

•List number of different guests who visited Ridge Hotel.

•What is the total income from bookings for the Grosvenor Hotel? .

•List all the guests who have stayed in a hotel.

Task 3 [3 marks]

Perform the following tasks.

•Write commands to insert rows in each of the Hotel database tables .

•Write a command to delete the row you inserted in the table Guest .

•Write a command to update the price of all rooms by 10% (1 mark).

A random sample of six cars from a particular model year had the fuel consumption figures, measure in miles per gallon, shown below.

1. Using T.INV, find a 90% confidence interval for the population mean of fuel consumption for cars of this model year. Assume the distribution is normal.   (Round to 2 digits, since our raw data below are expressed with one digit.) (Show work in space provided.)

(ii) Calculate the same interval using CONFIDENCE.T. (Show work in space provided.)

(iii) Calculate the same interval using T.INV.2T.

(Note: when calculating the lower and upper bounds of the interval, do not use a rounded mean that you’ve calculated with AVERAGE. Use the unrounded mean.   Round only the final answers, which are the lower and upper bounds of the interval. Also, make sure to use STDEV.S to calculate the sample standard deviation.)

              Data:

              28.6

              18.4

              19.2

              25.8

              19.4

              20.5

Let’s return to Tallahassee hotel market we considered in Problem Set 1, but now from the perspective of a hotel manager. Consider a hotel which can supply an unlimited number of hotel rooms at the constant marginal cost c = 20 per room per night, so that the hotel’s total cost function is given by C(q) = 20q. Assume that demand for hotel rooms in Tallahassee takes two possible values: on game days, demand is described by the demand curve q = 100−p, while on non-game-days demand is described by the demand curve q = 60 − 2p.

1. First suppose that the hotel acts as a price taker.

(a) What does it mean for the hotel to act as a price taker? What condition determines a price taker’s optimal supply decision?

(b) Assuming the hotel acts as a price taker, what will be the equilibrium price and quantity sold on game days? What about on non-game-days? (Remember, the hotel’s marginal cost is constant!)

(c) Briefly discuss, without solving, how your results in (b) would change if the hotel instead had increasing marginal costs (say for example MC(q) = q rather than MC = 20).

Government is considering building a public park in a small town ìBelleî. The cost of building this park is 120. There are three people in this town, Arnold, Ben, and Carrol. Each personís valuation of the park is 20, 30, and 80 respectively. But, government does not know these valuations.

(a) The government decides whether to build this park by majority voting. If majority supports building the park, then cost will be equally shared. What will be the outcome of majority voting?

(b) Government suggests that the cost of building the park will be financed through the government revenue in other towns. But government will only take this project when the benefit is higher than the cost. Government want survey these three to know the benefit of the park. Do you think this is the right plan to get the benefit of the park? Explain why or why not.

(c) Government suggests another plan. Government will survey these three to get the valuation of the park. If the sum of benefit is greater than the cost, cost will proportionately shared among three according to the reported valuation. For example, the reported valuation is 50, 60, and 70, then each cost share will be 50/(50+60+70), 60/(50+60+70), and 70/(50+60+70). Do you think this is the right plan to get the true valuation? Explain why or why not.

Our teacher has us suing the Geogebra Statistic calculator -

Hypothesis Test for a Population Proportion

A well-known brokerage firm executive claimed that 70% of investors are currently confident of meeting their investment goals. An XYZ Investor Optimism Survey, conducted over a two week period, found that in a sample of 400 people, 68% of them said they are confident of meeting their goals.

Test the claim that the proportion of people who are confident is smaller than 70% at the 0.05 significance level.

The null and alternative hypothesis would be:

H0:p≤0.7H0:p≤0.7
H1:p>0.7H1:p>0.7

H0:μ≥0.7H0:μ≥0.7
H1:μ<0.7H1:μ<0.7

H0:μ≤0.7H0:μ≤0.7
H1:μ>0.7H1:μ>0.7

H0:μ=0.7H0:μ=0.7
H1:μ≠0.7H1:μ≠0.7

H0:p=0.7H0:p=0.7
H1:p≠0.7H1:p≠0.7

H0:p≥0.7H0:p≥0.7
H1:p<0.7H1:p<0.7

The test is:

right-tailed

left-tailed

two-tailed

The test statistic is:  (to 3 decimals)

The p-value is: (to 4 decimals)

Based on this we:

• Fail to reject the null hypothesis
• Reject the null hypothesis