Linkin Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company’s current truck (not the least of which is that it runs). The new truck would cost $55,400. Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of $7,700. At the end of 8 years the company will sell the truck for an estimated $27,500. Traditionally the company has used a rule of thumb that a proposal should not be accepted unless it has a payback period that is less than 50% of the asset’s estimated useful life. Larry Newton, a new manager, has suggested that the company should not rely solely on the payback approach, but should also employ the net present value method when evaluating new projects. The company’s cost of capital is 8%.

Click here to view PV table.

(a)

Compute the cash payback period and net present value of the proposed investment. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round answer for present value to 0 decimal places, e.g. 125. Round answer for Payback period to 1 decimal place, e.g. 10.5. For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

(b)

Does the project meet the company’s cash payback criteria?

Does it meet the net present value criteria for acceptance?

Here are the returns on two stocks.

Digital Cheese Executive Fruit

January +14 +7

February −3 +1

March +5 +4

April +7 +12

May −4 +2

June +3 +7

July −2 −3

August −8 −2

Required: a-1. Calculate the variance and standard deviation of each stock. a-2. Which stock is riskier if held on its own? b. Now calculate the returns in each month of a portfolio that invests an equal amount each month in the two stocks. c. Is the variance more or less than halfway between the variance of the two individual stocks?

An online marathon fund raiser continues as long as donations keep coming in. The first hour costs $1.00, and then the cost per hour goes up by 8% every hour. Suppose the fundraiser lasts for 126 hours.

How much will be raised in the last hour? Enter your answer rounded to two decimal places.?

How much will be raised in total? Enter your answer rounded to two decimal places.?

true or false

7) A challenge with all of the data sources available today is that so much data is now available, it requires people with the knowledge to properly synthesize and analyze the correct data, or else the models produced will not properly answer the question trying to be asked.   True: _____ False: _____

8) The Emergency Locator Transmitter activates and sends out a pinging signal making it easier to find wreckage in the case of an accident. However, there are still limitations in the technology as the battery typically only is designed to last a few days at best.   
True: _____ False: _____

9) Despite ICAO embracing a liberalization of skies, in Doc 9626, the organization still hesitates to promote the idea of a “flag of convenience” the same way they are used in the shipping and cruise industries “in order to ensure an orderly economic regulatory regime.”   True: _____ False: _____

10) The FAA has lost the battle over control of Commercial Space policy because of the new creation of the United States Space Force.   True: _____ False: _____

Problem 16-07
Cost of Trade Credit

Calculate the nominal annual cost of nonfree trade credit under each of the following terms. Assume that payment is made either on the due date or on the discount date. Assume 365 days in year for your calculations. Do not round intermediate calculations.

1. 1/15, net 25. Round your answer to two decimal places.
   %
   
2. 2/10, net 55. Round your answer to two decimal places.
   %
   
3. 3/10, net 55. Round your answer to two decimal places.
   %
   
4. 2/10, net 50. Round your answer to two decimal places.
   %
   
5. 2/15, net 40. Round your answer to two decimal places.
   %

 
Employee
Male
Female
Male
Female
1
20.3
14.3
15.2
19.3
2
19.7
19.5
14.2
18.4
3
27.6
16.5
8.9
18.1
4
25.8
13.8
9.7
15.9
5
26.2
12.4
10.5
17.8
6
20.4
11.8
15.1
17.0
7
24.3
14.2
12.0
16.8
Total
164.3
102.5
85.6
123.3
Mean
23.47
14.64
12.22
17.61
GT
164.3+102.5+85.6+123.3=475.7

A manager must make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate: A for $508 and B for $533. In addition, A offers a three-day rate of $474 and a nine-day rate of $410, and B offers a four-day rate of $451 and a seven-day rate of $430. Annual holding costs are 31 percent of unit price. Three hundred and thirty boxes are to be shipped, and each box has a price of $152. Which shipping alternative would you recommend? (Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places. Omit the "$" sign in your response.)

Data 2019

A study was conducted to test the impact of a reading intervention on kindergarten children’s acquisition of beginning reading skills. In order to gauge progress, a number of measures were used, including measures of the acquisition of sound equivalents of letters, letter names, concept of number, sight words, reading comprehension, etc. Letter naming has been found to be an effective proxy for overall development.

In this study, you are asked to analyze the results of the upper and lower case (52) letter naming assessment.

60 subjects were randomly assigned to two groups, an experimental group and a “waiting group” control. All subjects were assessed three times, prior to treatment (Oct. 15), after ten weeks, and after 20 weeks. The experimental group was enrolled in the intensive reading program for the first ten weeks, and then received no treatment for the next ten weeks. The “waiting group”, received no treatment for the first ten weeks, and then was enrolled in the intensive reading group for the next ten weeks. Three data points were thus gained.

The appropriate statistic to use in this example is a repeated measure (dependent sample) analysis of variance. However, neither the student version of SPSS, nor Excel, has a sufficiently sophisticated statistic to do a complete analysis. So for your project, find the means and standard deviations for the pre, mid, and post measures for each of the groups (a total of 6). If you had a repeated measure capability, you would then complete a post hoc analysis, probably using Tukey’s statistic. Since you don’t, I am asking you to draw what logical conclusions you can by simply looking at the means and noting differences, and then, accounting for history, development and other external and internal threats to validity, draw tentative conclusions.

Group 1

Download data.beergoggles.csv. The hypothesis is that after alcohol had been consumed, subjective perceptions of physical attractiveness would become more inaccurate (beer-goggles effect). There were 48 participants: 24 males, 24 females. The researcher took 3 groups of 8 participants to a night club. One group got no alcohol, one group 2 pints, and one group 4 pints. At the end of the evening the researcher took a photograph of the person the participant was chatting up. The attractiveness of the person on the photo was then rated (0 - 100) by independent judges. Use a 0.03 significance level and apply the methods of two-way analysis of variance. Was there an interaction between the two factors? What is your conclusion?