Prepare a 12- to 15-slide PowerPoint^® presentation with speaker notes requesting initial funding of $500,000 to start and run a start-up company. The proposed start-up company could be an existing business model (coffee shop, pet store, etc.) or could be something entirely new and exciting.

Title Page

Table of Contents

Executive Summary

Information about the Industry

Marketing Plan

Competitor Analysis

3 Year Income Statement (Profit & Loss) Projections

Include your assumptions for why and how you will achieve your sales growth and what significant expenses and investments you expect to incur to achieve your revenue goals.

3 Year Proposed Funding Schedule (Sources and uses of the funds received.)

Break-Even Analysis

Academic and Business References

Review the following scenarios and assumption, and explain how it impacts your decision to expand:

After Year 3, the investors are interested in your company expanding internationally to possibly outsource labor or to reduce manufacturing costs. What countries would you expand to first, and why? What factors would you need to consider in making this decision?

What is the corporate tax rate in the countries you are considering expanding your business to, and how will that affect your decision to expand globally? (Use OECD Database or another resource to determine the corporate tax rate).

The investors want to see a decision tree detailing the decisions you would make if you received $300K now and $200K at the end of three years instead of $500K up front.

The investors would like your team to provide advantages and disadvantages of using debt financing versus selling company stock to raise capital for growth.

Briefly explain the venture capital process. Does it make sense for your company to raise funds through venture capital?

Two children, each with a mass of 25.4 kg, are at fixed locations on a merry-go-round (a disk that spins about an axis perpendicular to the disk and through its center). One child is 0.72 m from the center of the merry-go-round, and the other is near the outer edge, 3.07 m from the center. With the merry-go-round rotating at a constant angular speed, the child near the edge is moving with translational speed of 12.0 m/s.

(a) What is the angular speed of each child? ω 0.72 m = rad/s ω 3.07 m = rad/s

(b) Through what angular distance does each child move in 5.0 s? θ 0.72 m = rad θ 3.07 m = rad

(c) Through what distance in meters does each child move in 5.0 s? d 0.72 m = m d 3.07 m = m (d) What is the centripetal force experienced by each child as he or she holds on? Fc, 0.72 m = N Fc, 3.07 m = N

(e) Which child has a more difficult time holding on?

1.The outer child has a more difficult time holding on.

2.The inner child has a more difficult time holding on

A) Relying STRICTLY on our classroom discussion: the US corporate tax rate was recently reduced from 35% to 21%. In the near future, would you expect the target (optimal) D/V ratios of US companies to increase or decrease as the result of this change? (2-3 sentences)

B) What LEGISLATIVE change (i.e. a law or a regulation), if adopted, would most likely cause the target (optimal) D/V ratios of US companies to move in the OPPOSITE direction compared to the one you predicted in part (A)? (2-3 sentences)

C) Relying STRICTLY on our classroom discussion: Assume US personal tax rates on capital gains will be reduced next month. In the near future, would you expect the propensity to pay dividends among US companies to increase or decrease as the result of this change? (2-3 sentences)

D) The need for financial flexibility is sometimes used as explanation for the tendency of US firms to utilize LOWER D/V ratios compared to the (optimal) target ratios based on the trade-off between tax benefits and distress- or agency-related drawbacks associated with debt financing. Give one argument for why the need for financial flexibility is likely NOT the reason for relatively low D/V ratio utilized by Walmart. (2-3 sentences)

Consider the following scenario:

The privately owned Baker Company was founded in 1960. The company manufactures kitchen cabinets and has been very successful, expanding from one facility to twelve facilities in the same and other states. All facilities but the original are located near interstate highways. The original facility, which is no longer the headquarters, is in a downtown area of a major city (which grew up around it) with relatively high real-estate taxes. It has had a negative contribution margin and a net loss for the last five years. The founder is retired and three of his children want to close the facility. The fourth does not, because it "was Dad's first place and I went there every day after school." She believes they can bring the facility back to profitability if the city's downtown revitalization project succeeds and they dedicate the first floor of the facility to retail.

Consider:

• Your definition for "negative contribution margin."
• Whether the fact that the facility is not near an interstate makes a difference in the decision.
• Would it make a difference if the company were publicly traded?
• Might there be additional costs, in addition to revenues, to convert the first floor of the facility to retail?
• What risks may be associated with leasing to retail stores?
• What is your recommendation? Close and sell the facility or modify the first floor to be able to lease to retail stores.

A study of fox rabies in a country gave the following information about different regions and the occurrence of rabies in each region. A random sample of

n₁ = 16

locations in region I gave the following information about the number of cases of fox rabies near that location.

x₁:

   Region I Data

A second random sample of

n₂ = 15

locations in region II gave the following information about the number of cases of fox rabies near that location.

x₂:

   Region II Data

(i) Use a calculator with sample mean and sample standard deviation keys to calculate x₁ and s₁ in region I, and x₂ and s₂ in region II. (Round your answers to two decimal places.)

(ii) Does this information indicate that there is a difference (either way) in the mean number of cases of fox rabies between the two regions? Use a 5% level of significance. (Assume the distribution of rabies cases in both regions is mound-shaped and approximately normal.)
(a) What is the level of significance?

Store Closing?

For this discussion, consider the following scenario:

The privately owned Baker Company was founded in 1960. The company manufactures kitchen cabinets and has been very successful, expanding from one facility to twelve facilities in the same and other states. All facilities but the original are located near interstate highways. The original facility, which is no longer the headquarters, is in a downtown area of a major city (which grew up around it) with relatively high real-estate taxes. It has had a negative contribution margin and a net loss for the last five years. The founder is retired and three of his children want to close the facility. The fourth does not, because it "was Dad's first place and I went there every day after school." She believes they can bring the facility back to profitability if the city's downtown revitalization project succeeds and they dedicate the first floor of the facility to retail.

• Your definition for "negative contribution margin."
• Whether the fact that the facility is not near an interstate makes a difference in the decision.
• Would it make a difference if the company were publicly traded?
• Might there be additional costs, in addition to revenues, to convert the first floor of the facility to retail?
• What risks may be associated with leasing to retail stores?
• What is your recommendation? Close and sell the facility or modify the first floor to be able to lease to retail stores.

On plant Mercury there is a special lake with two layers: dH2O and dHg (liquid mercury). The liquid water layer floats on top of the liquid mercury layer. Let ρH2O and ρHg denote the densities of water and mercury respectively. The gravitational field near the planet’s surface is gy, and the the atmospheric pressure near the surface of the lake P0.

a.Determine an expression in terms of the gi variables for the pressure in the lake as a function of depth all the way to the bottom of the layer of mercury. Graph this function.

b. Suppose an object density ρ is dropped into the lake. Assume ρH2O < ρ < ρHg. What fraction of the object you think will be submerged in the mercury after the object comes to rest in static equilibrium in the limit ρ → ρH2O .What fraction of the object you think will be submerged in the mercury after the object comes to rest in static equilibrium in the limit ρ → ρHg?

c.Determine an expression for ρ in terms of ρH 2O and ρHg that you believe would result in the object being half-submerged in the mercury layer and half-submerged in the water layer?Assume ρH2O < ρ < ρHg

d. Consider the general case where the density of the object is simply the unknown variable p. Determine an expression for the fraction of the object that will be submerged in the mercury when the object comes to rest in static equilibrium?

1) Which of the following statements are true regarding the event horizon of a black hole? (Select all that apply.)

1. The event horizon is the location that marks the "point of no return" for a black hole. Anything that crosses the event horizon can never escape.

2. The Schwarzschild radius specifies the location of the event horizon.

3. The event horizon is the location where the escape velocity is equal to the speed of light.

4. Inside the event horizon, the escape velocity is less than the speed of light.

5. The event horizon specifies the maximum mass that a star can have before collapsing into a black hole.

2) Which of the following statements are true regarding how black holes are formed? (Select all that apply.)

1. All stars eventually produce black holes at the end of their lives, because white dwarfs are unstable and will collapse into black holes.

2. Stars with masses that are eight times as large as our sun's or more will produce a black hole when they collapse and explode in a supernova.

3. Two white dwarfs or neutron stars can produce a black hole if they collide.

4. If a white dwarf accretes material from a companion star in a binary system, it will eventually collapse into a black hole.

3) Which of the following answers is the best response to the statement: "everything near a black hole will be sucked in."

1. True, the gravity of a black hole is so strong that it is impossible to escape no matter where you are.

2. False, the presence of accretion disks shows us that nothing that falls near a black hole is absorbed.

3. True, black holes are large, and it is unlikely that an object will not fall into a black hole once the black hole's gravity begins to pull on it.

4. False, black holes are relatively tiny compared to other objects with similar mass, so material that falls near a black hole will orbit it rather than fall directly in.

4) Calculate the Schwarzschild radius that Jupiter would have if it were to turn into a black hole.

Hint: Jupiter's mass is 1.9 x 10²⁷ kg.

Hint: the gravitational constant is 6.67 x 10^-11.

5) As a black hole gains mass via accretion, its radius will...

1. Remain the same

2. Increase

3. Decrease

A power plant is planning construction of a new plant to generate electricity four years hence and must decide now between a small, medium, or large-sized plant. The exact size needed is uncertain because future demands can only be estimated. Forecasters have estimated future demands and their likelihoods as follows:

            In the following, all the future costs and earnings have been adjusted to their present worth:

1. The capacity of a small plant would limit its NPV to $60 million regardless of demand. If demand is medium, a small plant can be enlarged a moderate amount at a cost of $20 million. Its NPV would then be $110 million less the cost of $20 million for the expansion. If demand is high, a small plant can be enlarged greatly in size at a cost of $80 million. Its NPV would then be $170 million less the cost of $80 million for the expansion. On the contrary, if demand is high, a small plant can be enlarged a moderate amount to increase its NPV to $140 million less the cost of $40 million for the expansion.
2. A medium-sized plant will have an NPV of $120 million if demand is high or medium and a loss of $5 million if demand is low. If demand is high, a medium-sized plant can be enlarged at a cost of $40 million to generate an additional $80 million in earnings.
3. If a large plant is built and demand is high, the plant’s net present value (NPV) is estimated to be $180 million. If the demand is medium, however, the NPV of a large plant will drop to $100 million. If the demand is low the NPV will be loss of $200 million.

Use decision-tree analysis in MS Excel to determine the size of the power-generating plant the company should build now. (Please show the formulas in the cells)

Questions:

1. What size of the power-generating plant the company should build now?

2. Will the answer be the same if you will change the forecasters estimated demands and their likelihoods to:

Decide on the two grocery stores to use in this activity

Decide on the 15 products you want to compare.

The brand name, product, and size have to be exactly the same at each store. Therefore, do not compare generic brands as they have different names at different stores.

You may have to wait until your visit to the first store to determine the “size” as you may not be aware of the different size packages for different products.

Use a variety of products to get a good representation of all items at the stores.

At each store, record the price of each product on your list. (A question always comes up whether to use a sales prices or a club card price. You should use the price of the item that you’d pay on the particular day you visit the store.)

If you didn’t record the prices in an electronic spreadsheet (such as an Excel spreadsheet) at each store, do so after you collect all your data.

Questions to answer after collecting your data

The question of interest is, “Are the items at one of the two grocery stores in your study more expensive, on average, than the other store?”

Answer these questions to answer the question of interest. (R tutorial 2 may be helpful in answering some of these questions.)

1.   (1 point) Give the two stores you are comparing and a personal motivation on why you chose those two stores.

2.   (2 points) Give a brief summary of how you chose the 15 items you used in the study. Do you feel these items are representative of all items at the store? (In other words, do you feel that you’ll be able to answer the question of interest based the items in your sample?) Why or why not?

3.   (3 points) What method of inference you used and why? (Include a check of the conditions to use that particular method. If you use a graph to assess any condition, include the graph) (Hint: think about the samples you took – are the samples independent or dependent?)

4.   (3 points) State the null and alternative hypotheses in statistical notation. Define any parameters used.

5.   (2 points) Obtain and include an appropriate graphical display that will allow you to make an initial guess as to whether you feel the null hypothesis will be rejected or not. (Hint: think about what method you will be using to perform the hypothesis test.) Comment on whether or not you feel the null hypothesis will be rejected and why or why not.

6.   (1 point) Perform the analysis in R. Report the test-statistic (with degrees of freedom) and p-value.

7.   (3 points) State a conclusion in the context of the problem that answers the question of interest supported with the p-value obtained in #6.

8.   (3 points) Use R to construct a 95% confidence interval for the average difference in prices between the two stores. Include and interpret the confidence interval in the context of the problem. (3 pts)

9.   (2 points) Which store would you shop at? Why?

10. (2 points) Provide a copy of your data.

DATA:

Vons:

Almond Milk                                       3.49

Strawberry pop tarts                           2.59

1 lb Bananas                                        .69

Head lettuce                                         1.69

Pace Salsa                                             3.39

Ball park beef franks                          4.49

Ball park buns                                      2.49

Kraft American Cheese                     5.99

Crest toothpaste                                  4.00

Strawberries                                          3.50

Special K                                               4.99

Hidden Valley Ranch                         3.99

Core Water                                           1.99

Jif Peanut Butter                                  3.09

Egglands best                                       3.99

Smiths:                 

Almond Milk                                        3.19

Strawberry pop tarts                            2.29

1 lb Bananas                                        .59

Pace Salsa                                             3.29

Head lettuce                                         .99

Ball Park Beef Franks                        4.99

Ball Park Buns                                     2.99

Kraft American Cheese                      3.19

Crest toothpaste                                  2.99

Strawberries                                          2.50

Special K                                               2.49

Core Water                                           1.50

Jif Peanut Butter                                  2.79

Hidden Valley Ranch                         3.29

Egglands Best                                      2.89