A house is rented with the rental price paid at the end of the first year

of Rp.13,000,000. The rental price in subsequent years decreased by

Rp.500,000 per year for the 15-year economic life of the house. The cost of

building the house is IDR 80,000,000. The cost of building a house is

incurred in year 0 and revenue from rent is received at the end of each

year. Determine the advantages or disadvantages of this scheme if the bank interest rate is

5% per year.

A husband and wife are planning for retirement and they believe that a comparison over a five- year period would be appropriate. They are given the following information about one mutual fund that they are considering. Assume that all remaining assets under management are withdrawn by the family at the end of 5 years.

Year Beginning Assets Under Management

1. 30.000.000

2. 35.000.000

3. 25.000.000

4. 15.000.000

5. 20.000.000

Net Return (%)

1.   6%

2. 2%

3. -17%

4. -3%

5. 6%

a. Compute the arithmetic and geometric mean annual return for the fund. Write the formulas. (without excel)

b. What is the money-weighted annual return for the fund? You can calculate the annual cash flow (either additional investment or withdrawal by the couple) at year t as the difference between the beginning assets under management at year t and ending assets under management at year t-1.

let x be the number of smokers in a family composed of a husband and a wife. X is a random variable which takes values 0,1,2, with respective probabilities po, p1, p2. The average number of smokers per family is 0.63. 40% of families contain at least one smoker. find the probabilities po, p1, p2.

Note: this question is related to binomial distribution lesson  

A husband and wife are planning for retirement and they believe that a comparison over a five- year period would be appropriate. They are given the following information about one mutual fund that they are considering. Assume that all remaining assets under management are withdrawn by the family at the end of 5 years.

Year Beginning Assets Under Management

1. 30.000.000

2. 35.000.000

3. 25.000.000

4. 15.000.000

5. 20.000.000

Net Return (%)

16%

12%

-17%

-3%

6%

a. Compute the arithmetic and geometric mean annual return for the fund.

b. What is the money-weighted annual return for the fund? You can calculate the annual cash flow (either additional investment or withdrawal by the couple) at year t as the difference between the beginning assets under management at year t and ending assets under management at year t-1.

A Contingent Consideration Problem

Parent Company acquires 100 % of Sub Company for by exchanging 100,000 shares of its $1 par value common stock with a current market value of $35 per share. The agreement contains a provision that:

If the subsidiary earns a net income of more than $500,000 during the first year following the acquisition, an additional cash payment for 30% of the excess over $500,000 will be paid at that time, and

If the price per share of Parent Company’s stock is below $35 on the first anniversary date of the acquisition, an additional 10,000 shares will be handed over.

On the acquisition date the parent company calculates the probability-adjusted present values at $20,000 for the cash contingency and $50,000 for the contingency related to its share price. Prepare the Parent Company journal entry to record the acquisition.

A year later, the subsidiary reported net income of $700,000 for the first year after the acquisition and Parent Company’s share price was $30. Prepare the Parent Company journal entry for the settlement of the contingencies.

If instead of the facts in (b) the subsidiary reported net income of $400,000 and the Parent Co.’s share price was $36 what would Parent Company’s journal entry for the settlement of the contingencies have been?

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PLEASE SHOW YOUR WORK***

Part 1:

Suppose the mean score on the first exam is a 60 out of 100. I would like to curve the exam to force the mean score to be an 80 out of 100. If I added 20 to everyone’s score, would the SD of the exam scores change? How about if I multiplied 4/3 to everyone’s score? Explain.

Part 2: Continuing from Part 1, fill out the formulas put below that will always be true. Let a = constant (- or +) and X = random variable.

EV (a + X) =

SD (a + X) =

SD (aX) =

EV (aX) =

Variance (a + X) =

Variance (a + X) =

1. An engineering project involves the purchase of a capital asset with first cost of $100 000, operating costs of $5 000 per year and a service life of 10 years. The expected revenue is $20 000 per year. If the CCA rate is 25%, interest rate is 10% and the corporate tax rate is 33%, what is the project's present worth?

A reservoir contains 100 million gallons of water. On the first of January, the EPA measures the amount of a pollutant in the reservoir and determines that there are C pounds of pollutant. The reservoir is fed by a polluted stream that brings in 1 million gallons of water per day. This stream water contains the pollutant at a concentration of 0.00002 pounds of pollutant per gallon. At the same time, reservoir water escapes through a channel to the ocean in such a way that the amount of water in the reservoir stays fixed. Let P(t) denote the amount of pollutant in pounds the reservoir at time t.

A )How many pounds of pollutant enters the reservoir per day ?

B )How many pounds of pollutant exits the reservoir per day?

C )Write a differential equation that describes the rate that the amount of the pollutant present in the reservoir is changing. You should include any initial conditions that the pollutant satisfies, but you do not need to solve the differential equation

Of the first 100 appointments to the nation’s Supreme Court, 52% of the justices have been firstborn or only children. Assuming the 100 Supreme Court justice appointments represent a random sample of all past and future justices, construct a 95% confidence interval for the percentage of all Supreme Court justices who were firstborn or only children.