You're a consultant hired by a small company that installs GPS units in semi trucks and school buses. the company is considering investing in a project to manufacture the units themselves (instead of purchasing the new units). they've used their weighted average cost of capital (WACC) of 15 percent to determine that the project has a positive NPV of $3,000.
The CFO and CEO dont agree. the CEO doesnt believe that the WACC is the correct number because the project is risky: its a brand-new venture. The CFO argues that the WACC alread incorporates risk, and the cost of new funds at the source (debt and equity financing) is the only thing that matters.
A. what is WACC? whats the formula?who is correct? why?
B. WHat are two different approaches to determine an appropriate cost of capital that appriately accounts for the different risk? Walk us through the steps in how youwould you proceed. (keep in mind theres more than one correct answer) then identify an advantage and disadvantage of each of these approaches. Lastly, how would you determine if this project should be accepted or erejected ? (no actual computations are needed)
In: Finance
Select one of the following schools of economic thought: Keynesian, Chicago, and Austrian. Identify three keys points or beliefs that are held by that particular school. What are the macroeconomic policy implications of those beliefs? Explain your answer. Which school of economic thought do you find to be most convincing? Why?
In: Economics
In: Nursing
Eric wants to estimate the percentage of elementary school children who have a social media account. He surveys 450 elementary school children and finds that 280 have a social media account. Identify the values needed to calculate a confidence interval at the 99% confidence level. Then find the confidence interval.
In: Statistics and Probability
Eric wants to estimate the percentage of elementary school children who have a social media account. He surveys 450 elementary school children and finds that 280 have a social media account. Identify the values needed to calculate a confidence interval at the 99% confidence level. Then find the confidence interval.
In: Statistics and Probability
Eric wants to estimate the percentage of elementary school children who have a social media account. He surveys 500 elementary school children and finds that 250 have a social media account. Identify the values needed to calculate a confidence interval at the 99% confidence level. Then find the confidence interval.
In: Statistics and Probability
How does ADHD affect and impact children in grade school K-12? Please explain your answer in detail. For example, write a few or a couple of paragraphs about how a child's academic performance, learning, and grades are impacted by ADHD. Are stimulants the only way for children with ADHD to succeed in school?
In: Psychology
Assume you are pursuing a bachelor’s degree and you have 40 hours to divide between work and school in a week. You choose the amount of time you spend on each based on the classes you take and the hours you request at work. The degree will take you 3 years to complete if you dedicate 40 hours a week and do not take summers off. Obviously, if you devote no time to school, you never get your degree.
|
Time spent Working |
Time spent on School |
Years needed to get a bachelor’s degree |
|
|
A |
0 |
40 |
3 |
|
B |
10 |
30 |
4.5 |
|
C |
20 |
20 |
6 |
|
D |
30 |
10 |
8 |
|
E |
40 |
0 |
Never Complete |
*Time listed on the chart is in hours per week.
In: Economics
Some additional collected data is presented in the table below:
|
Age Category AMUSEMENT |
PK |
K |
Elementary school |
Middle school |
|
|
Eggs Coloring (EC) |
40 |
30 |
10 |
15 |
|
|
Bunnies Hoping (BH) |
30 |
100 |
20 |
40 |
|
|
Roller Coaster (RC) |
5 |
60 |
80 |
30 |
|
|
Give the literal formula first (not with numbers) and then solve: “What is the probability of being in PK category given that you will ride a Roller Coasters” |
|
|
Give the literal formula first (not with numbers) and then solve: “What is the probability of being in the Elementary or Middle school and participate in Bunnies Hoping.” |
|
|
Give the literal formula first (not with numbers) and then solve: “What is the probability of being in PK or K given that you prefer Roller Coaster |
|
|
Give the literal formula first (not with numbers) and then solve: “What is the probability of not attending a Bunnies Hoping amusement” |
|
|
Is there any relationship between being a participant attending the middle school and the amusement type; explain it based on the probability values. |
In: Statistics and Probability
You are asked to investigate the impact of diabetes on elementary school students’ academic performance. You decide to test whether the mean standardized test performance of students with diabetes is worse than the test performance of the school as a whole. The school has 235 students and the average test score for the school is set at 100 and has a standard deviation of 25. You are given data from 10 diabetic students who have an average score of 80. Please use a significance of 0.01.
a. Identify the assumed sample distribution, the formula for the test statistic, the significance level, the test distribution, and the null & alternative hypotheses
b. Calculate and report the test statistic, the input values for the test statistic, and the p value that results from the test. Also calculate the statistical power.
c. Decide whether you will reject or fail to reject the null hypothesis. Interpret that decision in the context of the problem. Evaluate the statistical power.
In: Statistics and Probability