You plan to purchase a car for $28,000. Its market value will decrease by 20% per year. You have determined that the IRS-allowed mileage reimbursement rate for business travel is about right for fuel and maintenance at $0.485 per mile in the first year. You anticipate that it will go up at a rate of 10% each year, with the price of oil rising, influencing gasoline, oils, greases, tires, and so on. You normally drive 15,000 miles per year. What is the optimum replacement interval for the car? Why? Your MARR is 9%. Show all the EUAC calculation steps for at least one “n” and fill out the table below for different n’s up to 10 years to get credit (do NOT just give the final answer and a justification).

Please show cash flow diagram and do not use excel functions.

Please show all work.

A national car rental agency wishes to analyze the relationship between the mileage on used vehicles and the selling price. They selected a random sample of 12 comparably equipped 3-year-old Chevrolet Cruzes sold at auctions. The data on mileage and selling price are found below: PRICE MILEAGE 7000 60000 8500 52000 7000 62000 8900 48000 7600 55000 7200 60000 8500 50000 7800 53000 7200 58000 9000 48000 7200 60000 7700 55000 a) Find the regression equation relating Price to Mileage. b) Calculate the correlation coefficient, accurate to three decimal places c) Test the significance of the correlation coefficient with a 0.05 level of significance. Include definition of hypotheses, test statistic, p-value or critical value, decision about Ho, and conclusion. d) What is the best estimate for the price of a Chevy Cruze with 54,000 miles?

Schedule C

Dave Sanders does computer consulting work on the side. He received a 1099 from his largest client showing that he made $25,300 from his work for that company. He also earned an additional $3750 from other clients. Dave incurred the following expenses:

Office supplies                 $226

Insurance                         $535

Advertising                       $545

Telephone                        $767

He also drove 1585 business miles in 2020 and would like to use the standard mileage rate rather than actual expenses.

Complete the Schedule C for Dave. He uses his social security number 123-45-6789 and does not have an employer identification number. The name of the business is Dave’s Computer Consulting and he does the work from his home at 221 Main St, Heron, IL 61820. He uses the cash method of accounting. This business was started in 2012. He does not need to file 1099 forms.

Please state the step number next to the answers given, thank you!

An automobile manufacturer claims that their jeep has a 31.9 miles/gallon (MPG) rating. An independent testing firm has been contracted to test the MPG for this jeep. After testing 16 jeeps they found a mean MPG of 32.1 with a standard deviation of 1.6. Is there sufficient evidence at the 0.05 level that the jeeps outperform the manufacturer's MPG rating? Assume the population distribution is approximately normal.

Step 1 of 5: State the null and alternative hypotheses.
Step 2 of 5: Find the value of the test statistic. Round your answer to three decimal places.
Step 3 of 5: Specify if the test is one-tailed or two-tailed.
Step 4 of 5: Determine the decision rule for rejecting the null hypothesis. Round your answer to three decimal places. (Reject H0 if t>_______)
Step 5 of 5: Make the decision to reject or fail to reject the null hypothesis.

The Parker Piano Company purchased a Delivery Truck on January 1, 2025 for $50,000 which included all costs to get the asset ready for use. The truck has an anticipated life of 100,000 miles or 4 years. The estimated residual value at the end of the assets service life is expected to be $2,000. For assets of this type, the company utilizes the straight-line depreciation method.

1. Record the purchase of the asset.

2. Complete the depreciation table below.

3. Record the entry for December 31, 2025 to record the depreciation for the year.

4. Suppose the company sells the van on December 31, 2027 for $18,000 cash. Provide the journal entry to record the sale.

1. A major credit card company is planning a new offer for their current cardholders. The company will give double airline miles on purchases for the next 6 months if the cardholder goes online and registers for this offer. To test the effectiveness of this campaign, the company recently sent out offers to a random sample of 50,000 cardholders. Of those, 1184 registered. A staff member suspects that the success rate for the full campaign will be more than the standard 2% rate that they are used to seeing in similar campaigns. What do you predict?

1. What are the hypotheses? (2 pts)

2. Is the condition for Normal Approximation met? Be sure to explain / show your calculations. (3 pts)

Do you think the rate would increase if they use this fundraising campaign? (5 pts)
Fully explain your reasoning, including all calculations & sketches – along with a sentence form explanation of your findings. (If you need extra space, ask your instructor for a blank sheet)

Marsha Jones has bought a used Mercedes horse transporter for her Connecticut estate. It cost $35,000. The object is to save on horse transporter rentals. Marsh had been renting a transporter every other week for $200 per day plus $1.00 per mile. Most of the trips are 80 or 100 miles in total. Marsha usually gives her driver, Joe Laminitis, a $40 tip. With the new transporter she will only have to pay for diesel fuel and maintenance, at about $0.45 per mile. Insurance costs for Marsha’s transporter are $1,200 per year. The transporter will probably be worth $15,000 (in real terms) after eight years, when Marsha’s horse Spike, will be ready to retire. Is the transporter a positive-NPV investment? Assume a nominal discount rate of 9% and a 3% forecasted inflation rate. Marsha’s transporter is a personal outlay, and not a business or financial investment, so taxes can be ignored. (use excel and show functions)

Compute in excel

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

Marsha Jones has bought a used Mercedes horse transporter for her Connecticut estate. It cost $35,000. The object is to save on horse transporter rentals. Marsh had been renting a transporter every other week for $200 per day plus $1.00 per mile. Most of the trips are 80 or 100 miles in total. Marsha usually gives her driver, Joe Laminitis, a $40 tip. With the new transporter she will only have to pay for diesel fuel and maintenance, at about $0.45 per mile. Insurance costs for Marsha’s transporter are $1,200 per year. The transporter will probably be worth $15,000 (in real terms) after eight years, when Marsha’s horse Spike, will be ready to retire. Is the transporter a positive-NPV investment? Assume a nominal discount rate of 9% and a 3% forecasted inflation rate. Marsha’s transporter is a personal outlay, and not a business or financial investment, so taxes can be ignored. (Use excel & excel functions)