2. Identify the type of sampling used: self-response, random, systematic, convenience,
stratified, or cluster.
a. DTE survey 20 households in every city in
the County to learn about the costumer
satisfying level.
b. A sample consists of students with even
number Student’s ID.
c. A market researcher selects 100 people
from each state in the USA.
d. A pollster uses a computer to generate 500
random numbers, then interviews the voters
corresponding to those numbers.
e. To check the alcohol level of drivers,
police officers stopped every seventh car
passing through a side street near a
famous bar.
f. A University committee wants to know the
percentage of students who drive and text.
They survey all students majoring in History
and English.
g. A restaurant decided to give free
dessert for every 50th costumer dining
there.
h. A reporter writes the name of each US
senator on a separate card, shuffles the
cards, and then draws five names.
i. There are 4 bags of M&M in a box. One
consists of blue M&M, another bag has
red only M&M, the other two consists of
chocolate and yellow M&M respectively.
Lisa takes out 5 M&M from each bag to
create a sample of M&M.
j. A researcher conducts a survey by asking
100 randomly selected workers from each
category: no high school degree, high school
degree, more than high school degree.
k. A researcher wants to determine the
percentage of first grader still believe in
Santa Claus. He uses the first graders in
his son’s school as his sample.
l. A polling on Twitter asks its follower to rank
the work ethic of the congress from 1 to 5,
with 1 as the lowest and 5 as the highest
In: Statistics and Probability
13) T/F If the marginal revenue is less than the marginal cost, a profit-maximizing price taker should increase its output.
14) T/F When a firm is operating in a price-taker market, marginal revenue is always less than the market price.
15) T/F When an economist says a firm is earning zero economic profit, this implies that the firm will likely have to declare bankruptcy in the near future unless market conditions change.
16) T/F In the year 2008, nearly three out of four business firms in the United States were organized as corporations.
17) T/F The limited liability of stockholders in the corporate business structure makes it easier to raise equity capital.
In: Economics
The market for sandwiches consists of two sandwich shops operating in the local market that produce near identical products and that the inverse demand for sandwiches over the lunch hour is given by P = 280 − 2(Q1 + Q2). In this market each firm independently produces a quantity of output, and these quantities are then sold in the market at a price that is determined by the total amount produced by the two firms. The cost function for Shop 1 is C1(Q1) = 3Q1, and costs for Shop 2 is C2(Q2) = 2Q2. Given this information answer the following:
(a) Calculate the marginal revenue for each shop.
(b) Calculate the reaction function for each shop.
(c) Calculate the level of output each shop will produce if the market is in equilibrium.
(d) Calculate the equilibrium profits for each shop.
In: Economics
The market for sandwiches consists of two sandwich shops operating in the local market that produce near identical products and that the inverse demand for sandwiches over the lunch hour is given by P = 280 − 2(Q1 + Q2). In this market each firm independently produces a quantity of output, and these quantities are then sold in the market at a price that is determined by the total amount produced by the two firms. The cost function for Shop 1 is C1(Q1) = 3Q1, and costs for Shop 2 is C2(Q2) = 2Q2. Given this information answer the following:
(a) Calculate the marginal revenue for each shop.
(b) Calculate the reaction function for each shop.
(c) Calculate the level of output each shop will produce if the market is in equilibrium.
d) Calculate the equilibrium profits for each shop.
In: Economics
The market for sandwiches consists of two sandwich shops operating in the local market that produce near identical products and that the inverse demand for sandwiches over the lunch hour is given by P = 280 − 2(Q1 + Q2). In this market each firm independently produces a quantity of output, and these quantities are then sold in the market at a price that is determined by the total amount produced by the two firms. The cost function for Shop 1 is C1(Q1) = 3Q1, and costs for Shop 2 is C2(Q2) = 2Q2. Given this information answer the following:
(a) Calculate the marginal revenue for each shop.
(b) Calculate the reaction function for each shop.
(c) Calculate the level of output each shop will produce if the market is in equilibrium.
(d) Calculate the equilibrium profits for each shop.
In: Economics
The Utah Mining Corporation is set to open a gold mine near Provo, Utah. According to the treasurer, Monty Goldstein, “This is a golden opportunity.” The mine will cost $2,700,000 to open and will have an economic life of 11 years. It will generate a cash inflow of $375,000 at the end of the first year, and the cash inflows are projected to grow at 8 percent per year for the next 10 years. After 11 years, the mine will be abandoned. Abandonment costs will be $430,000 at the end of Year 11. a. What is the IRR for the gold mine? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. The Utah Mining Corporation requires a return of 10 percent on such undertakings. Should the mine be opened? Yes No
In: Finance
|
The Utah Mining Corporation is set to open a gold mine near Provo, Utah. According to the treasurer, Monty Goldstein, “This is a golden opportunity.” The mine will cost $3,700,000 to open and will have an economic life of 11 years. It will generate a cash inflow of $475,000 at the end of the first year, and the cash inflows are projected to grow at 8 percent per year for the next 10 years. After 11 years, the mine will be abandoned. Abandonment costs will be $530,000 at the end of Year 11. |
| a. |
What is the IRR for the gold mine? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| b. |
The Utah Mining Corporation requires a return of 11 percent on such undertakings. Should the mine be opened? |
|
In: Finance
John Hanning owns a small hotel. The following balances were taken from his books on 31 December 2016
Takings (Sales)
Premises, at Cost
Fixtures and Fittings at cost
Minibus
Provision for depreciation, 1 January 2016: Fixtures and
fittings
Minibus
Stock of wine, 1 January 2016 Debtors
Creditors
Bank overdraft
Cash in hand
Wages
Cleaning
Purchase of food and wine Running expenses of minibus Bank interest
(Dr Balance) Advertising
General expenses
Capital
Drawings
$
283,670.00 396,000.00 100,000.00
10,000.00
45,600.00 3,600.00 1,200.00 6,500.00 3,970.00
16,450.00 700.00 61,020.00 27,830.00 121,700.00 4,800.00 1,520.00 5,880.00 13,140.00 427,000.00 30,000.00
Page 2 of 6
Additional information:
Depreciation policies:
The fixtures and fittings should be depreciated at 15% on cost. The minibus should be depreciated at 20% of the written down value.
$3,000 of the total for the purchase of food and wine was in respect of food used by Larsen and his family.
Stock of wine at 31 December 2016 was $1,340.
Bank interest of $280 had accrued at 31 December 2016.
Advertising, costing $900, had been paid in December 2016. This was for advertising leaflets to be published in 2017.
Bad debts, $1,190, were to be written off.
REQUIRED
(a) Prepare the Income Statement for the year ended 31 December 2016.
[20 Marks]
(b) Prepare the Statement of Financial Position as at 31 December 2016.
[20 Marks]
In: Accounting
•South Park Energy is considering replacing the company's Methane Plant with a Nuclear Plant.
•The Methane Plant was built two years ago at a cost of $120M with an expected useful life of 5 years. This plant is being depreciated to zero using 5-year straight-line depreciation. The Methane Plant can be sold today for $70M. If this plant had been kept, it would have had no salvage value at the end of its expected useful life three years from today.
•The Nuclear Plant would cost $500M to build today. Since the Nuclear plant will just be a working prototype, its expected useful life is only 3 years and it falls in the 3-year MACRS depreciation class (yr 1: 33%, yr 2: 45%, yr 3: 15%, yr 4: 7%). The Nuclear Plant is expected to have a salvage value of $40M at the end of the plant's 3-year life. The Nuclear Plant is expected to reduce operating expenses by $150M each year during the plant's 3-year expected life and increase revenues by $40 million each year. The company's marginal tax rate is 40%, and this project has a weighted average cost of capital of 13%.
(Q1) What is the total cash flows during year 3 for this replacement analysis?
(Q2) What is the initial cash flow for this replacement analysis?
In: Finance
A material supply contractor has two options (i.e. from two different manufacturing companies, Company-1 and Company-2) to purchase a tractor for supply of construction materials. The details of cash flow of the two options are given below; Company-1 Tractor: Initial purchase cost = Rs.2000000, Annual operating cost including labor and maintenance = Rs.50000, Cost of new set of tires to be replaced at the end of year ‘3', year ‘6' and year ‘9' = Rs.110000 each, Expected salvage value = Rs.520000, Useful life = 10 years. Company-2 Tractor: Initial purchase cost = Rs.2200000, Annual operating cost including labor and maintenance = Rs.27000, Cost of new set of tires to be replaced at the end of year ‘4' and year ‘8' = Rs.120000 each, Expected salvage value = Rs.700000, Useful life = 10 years. Determine which company tractor should be selected on the basis of equivalent uniform annual worth at the interest rate of 2 % per year . Clearly demonstrate the Data, Solution and Cash Flow Diagram.
In: Finance