1. A 45 MPH design speed roadway with a 2000 ADT has a 6’ shoulder with a 12:1 slope. The shoulder immediately drains into a roadside ditch with 4:1 sideslopes, a bottom width of 4’. The bottom of the ditch is 1.75 feet deeper than the edge of the shoulder. The face of a rock cut is located 7’ from the center line of the ditch, away from the roadway. Is the rock cut located within the clear zone?  

Consider an economy that initially has a labor force of 2000 workers. Of these workers, 1900 are employed and each works 40 hours per week. 10 units of output are produced by each hour of labor. There are another 1500 adults in the economy who are not in the labor force.

A) What is the labor force participation rate?

The economy then enters a recession. Employment falls by 4%, and the number of hours per week worked by each employed worker falls by 2.5%. In addition, 0.2% of the labor force becomes discouraged at the prospect of finding a job and leaves the labor force.

B) After all of these changes, what is the new size of the labor force?

C) How many workers are unemployed now?

D) What is the new unemployment rate?

Research and develop a MS Word document of at least 2000 words that:

1) Discusses a renewable/sustainable energy project in the U.S.

2) The paper must include the background/history of the project. Who are the champions of the project? Who are the beneficiaries of the project? Is there an economical impact? Your opinion of the sustainability of the project.

3) State whether you are for or against the the effort and why.

4) Write a one or two paragraph conclusion stating what would you say to a decision maker to persuade them.

A. The expected demand for a regular component is 2000 units per year. The item can be purchased from Bonjo Limited. Their lists are shown in the table below. The ordering cost is $200 and the carrying cost per unit is 75%. The cost is $20.

You have just been promoted as the operations manager for this firm. Advise the purchasing manager in making the following decisions.

i. What is the economic order quantity?      

ii. If BONJO wants to consider quantity discount, what quantity should he order and why?  

B. Over the past year Jojo Ltd had annual sales of 10, 000 detergent paste ‘KEY’. The average quarterly sales for past 5 years have averaged; ?1 = 4000, ?2 = 3000, ?3 = 2000, and ?4 = 1000. Find the seasonal index.

4.

If you buy a call option of Amazon Inc. with an exercise price of $2000 for a premium of $210.

Draw payoff and profit of call option buyer and call option writer at expiration date graphically.

(use a ruler and draw it by hand if it is hard for you to do it on your computer)

Question 1

At the beginning of 1976 a relative migrated to Australia with $10,000 ‘spare cash’. The money could have been used to buy a block of land or invested in an ‘at-call’ savings account that paid interest at 8% p.a. compounded half-yearly. At the end of 2018, the land was valued by a local real estate agent who was keen to list the property on behalf of his agency, at a price of approximately $400,000.

Required:

1. Which of the alternative investments had the higher value at the end of 2018? Justify your response with appropriate calculations.

(Students should write no more than 50 words for this part of the question).

2. i)Assuming the half-yearly compounding of interest, what was the rate of growth in the land value over the total period expressed as a nominal annual interest rate?

2. What was the rate of growth in the land value over the total period expressed as an effective interest rate?

3. What was the rate of growth in the ‘at-call’ savings account over the total period expressed as an effective interest rate?

3. What investment in the savings account would have been necessary at the beginning

of 1976, to have the same value as the land was worth at the end of 2018? Briefly explain your response.

(Students should write no more than 50 words for this part of the question).

4. Recognising both your finance skills and ‘common sense’, one of your friends has asked whether your calculations above allow you to determine which of the investments would have been ‘better’ to make at the beginning of 1976, given the outcomes discussed above at the end of 2018. Provide a well-reasoned, complete response to this question taking into consideration various financial and non-financial issues.

(Students should write no more than 100 words for this part of the question).

e. i)You have now been provided further information that the investment in the land required the owner to make continuous annual payments of council rates over the total period held. These amounts are determined in accordance with Table 1 below. Assuming the land was sold at the end of 2018 (but ignoring the expected sale value), what is the adjusted present value at the beginning of 1976 of all the cash outflows relating to the acquisition and continued ownership of the land?

Note:     For the purposes of this question assume the following:

1. Rates are payable on the anniversary of each year of land ownership.

2. The annual amount of the rates are determined in accordance with the following formula;

Initial Purchase Cost ($) x Factor (times) x Relevant Percentage (%)

3. Rates are still payable for the 2018 year (for the full year).

Table 1

2. Taking into consideration the calculations from part e) i) of this question, what is the rate of growth in the land value over the total period expressed as an effective interest rate?

(Students should write no more than 50 words for this part of the question).