8. Adam, Bonnie, Chuck, Dave and Elaine are engineers from different companies attending a professional conference at the University of Arizona in Tucson. There are seven hotels near the campus. Each engineer will stay at a randomly picked hotel. a. What is the probability that they will all stay at the same hotel? b. What is the probability that they will all stay at different hotels? c. Adam has a crush on Bonnie, what is the probability that they will stay at the same hotel? d. What is the probability that exactly two of the five engineers will stay at the same hotel with no one else staying at a same hotel?

The dataset in the file Lab11data.xlsx contains data on Crimini mushrooms. The factor variable is the weight of the mushroom in grams and the response variable is the total copper content in mg. 1. Plot Copper vs. Weight and describe. 2. Find least squares regression line and interpret slope in the words of the problem. 3. Find the coefficient of determination (R2) and interpret in context. 4. Find the correlation coefficient (R) and interpret in context. 5. Find and interpret a 95% Confidence Interval for the true slope. 6. Find the predicted values for Weights of 12.1, 15.8, 19.7. 7. Find the residuals values for Weights of 12.1, 15.8, 19.7. 8. Graph the standardized residuals vs. predicted values (x-axis). Describe and comment. 9. Graph the predicted values vs. the actual accuracy values (x-axis). Describe and comment.

Better Mousetraps has developed a new trap. It can go into production for an initial investment in equipment of $6.3 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 $536,000. 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 $1.10 per trap and believes that the traps can be sold for $5 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 10%. 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.)

PROBLEM

In the Hotel management domain, we have the following concepts:
Hotel Hotel chain Hotel room      
Reservation Hilton Hilton San Diego Bayfront
Meeting room Ballroom Guest Room
Catering Service Internet Service       TV Service
Guest Parking Service       Item on bill      

You are asked to design a model, using a UML class diagram to relate the abovementioned concepts:

Correctly use UML notations for relations such as generalization, association, aggregation, composition. Be careful to distinguish objects from classes.

You may introduce additional concepts into the picture to make your model more appropriate.
For each Class in your diagram, you should define at least one attribute and one operation.

Use multiplicity whenever appropriate.

Note that if you are not sure about a concept, you should do research on the problem domain.

There is a hotel in Imatra (Finland) which is very close to Russian border. The
demand function of Finnish consumers for this hotel is Q = 1000 - P. The demand
function of Russian consumers for this hotel would be Q = 1400 - P if they had not
travel to Imatra, but they have to travel and cost of travelling is 200. MC of hotel is
200 for one visitor. Find the difference of profits with price discrimination and without
price discrimination.

You are considering opening a drive-in movie theater and running it for ten years. You have spent after-tax $10,000 researching the land that will be used for theater, but if you take the project you expect to incur another immediate after-tax expense of $20,000 as you work with a consulting firm to decide how to most efficiently run the business.

The project entails an immediate $100,000 capital expenditure, which can be depreciated over 10 years. You expect to sell this capital investment for $25,000 at the end of the ten year project. Working capital expenses for the project are $50,000 immediately, $40,000 incurred two years from today, both of which are fully recovered in ten years (at the end of the project).

The project’s operating costs are expected to be $100,000 for each of the first five years and then (starting between t=5 and t=6) grow at -5% per year through the end of the project (i.e., through t=10). You expect the project’s revenues to start at $100,000 starting one year from today and remain constant for the life of the project.

1. (1 points) To determine the discount rate for the project, you have found an all-equity firm with a risk level similar to the company you’re starting. That firm’s equity has a standard deviation of returns of 35% and a correlation with the stock market of 0.8. The risk free rate is 4%, the expected market returns are 9.5% and the standard deviation of market returns is 28%. What is your estimated cost of capital?
2. (7 Points) You decide to use 10% as the project’s opportunity cost of capital (ignore your answer from part a). Your expected tax rate is 25%. What is the project’s NPV?
3. (2 points) You find out that the government is interested in buying the capital investment from you at the end of the project. Instead of selling it for $25,000 at the end of the project, the government will commit today to buying the capital from you for $75,000 post-tax ten years from today. You trust the government and think that this sale is risk free should you take the project. To what extent (if any) should the above information factor in to your decision regarding whether or not to open the theater? Does it change the NPV in any way, if so how? (hint: think of the capital investment as its own project – how will this affect the cash flows and/or the discount rate)

Can you add as much details as you can, Thank you!

Clark Clothing Inc produces T-shirts, Shorts, and Pants. The profit contributions ($/unit) are:

T-shirt: $14.30/unit, Short $9.80/unit, and Pant: $12.20/unit. 250 hours for Cutting are available, 230 hours for Sewing, and 20 hours for Packing are available. There are two pending orders: 25 T-shirts and 50 Pants. The mathematical model to maximize total profit is given below:

Max 14.3*T + 9.8*S + 12.2*P

S.T.:

Cutting 1.5*T + 2.2*S + 3.1*P <= 250

Sewing 0.7*T + 1.9*S + 3.7*P <= 230

Packing 0.1*T + 0.3*S + 0.3*P <= 20

T-shirt Order T >= 25

Pants Order P >= 50

N-N T, S, P >= 0 AND INTEGER

1) What is the Optimal Solution?

T ____ Units

S ____ Units

P ____ Units

2) What is the Total Profit?

Assume Profit Contribution for Shorts is 11.5 (not 9.80) AND

the number of hours for Packing is 25 (not 20).

3) What is the new optimal solution?

T____ Units

S ____ Units

P ____ Units

4) What is the total Profit

Please perform in excel using solver, I know how to set this up but have problems putting it into excel and linking things correctly for solver

George Large (SSN 000-11-111) and his wife Marge Large (SSN 000-22-222) live at 2000 Lakeview Drive,Cleveland, OH 49001 and want you to prepare their 2016 income tax return based on the information below:

George Large worked as a salesman for Toyboat, Inc. He received a salary of $80,000 ($8,500 of federal income taxes withheld and $1,800 of state income taxes withheld) plus an expense reimbursement from Toyboat of $5,000 to cover his employer business expense. George must make an adequate accounting to his employer and return any excess reimbursement, none of the reimbursement was related to the meals and entertainment. Additionally, Toyboat provides George with medical insurance worth $7,200 per year. George drove his car 24,000 miles during the year, and he placed the car in service on June 1, 2014. His log indicates that 18,000 miles were for sales calls to customers at the customers' offices and the remainder was personal mileage. George uses the standard mileage rate method. Assume his business miles were driven evenly during the year. George is a collegel basketball fan. He purchased two season tickets for a total of $4,000. He takes a customer to every game, and they discuss some business before, during, and after the games. George also takes clients to business lunches. His log indicates that he spent $1,500 on these business meals. George also took a five-day trip to the Toyboat headquarters in Musty, Ohio. He was so well-prepared that he finished his business in three days, so he spent the other two days sightseeing. He had the following expenses during each of the five days of his trip: Airfare $200 Lodgoing $85/day Meals $50/day Taxicabs $20/day Marge Large is self-employed. She repairs rubber toy boats in the basement of their home. The total square footage of the Larges' home, including the basement is 3,000 square feet. The portion of the basement used in Marge's business is 750 square feet. The business cos is 811490. She had the following income and expenses:

Income from rubber toy bost repairs: $15,000 , Cost of supplies: $5,000, Contract labor: $3,500 and Telephone (business) $500.

The Largues use the simplified method to figure their deduction for Marge's busniess use of their home. Larges incurred the following total other expenses: Real estate taxes: 2,500 Mortgage interest: 4,500 Cash chritable contributions: 3,500.

Prepare Form 1040, Schedules A,C and SE for form 1040, Form 2106 for the 2016 year. (Assume no depreciation for this problem and that no estimated taxes were paid by the Larges)