Questions
Bilboa Freightlines, S.A., of Panama, has a small truck that it uses for intracity deliveries. The...

Bilboa Freightlines, S.A., of Panama, has a small truck that it uses for intracity deliveries. The truck is worn out and must be either overhauled or replaced with a new truck. The company has assembled the following information:

Present
Truck
New
Truck
Purchase cost (new) $ 24,000 $ 27,000
Remaining book value $ 8,000
Overhaul needed now $ 7,000
Annual cash operating costs $ 11,000 $ 6,000
Salvage value-now $ 3,000
Salvage value-five years from now $ 2,000 $ 5,000

    

If the company keeps and overhauls its present delivery truck, then the truck will be usable for five more years. If a new truck is purchased, it will be used for five years, after which it will be traded in on another truck. The new truck would be diesel-operated, resulting in a substantial reduction in annual operating costs, as shown above.

The company computes depreciation on a straight-line basis. All investment projects are evaluated using a 18% discount rate.

1. What is the net present value of the “keep the old truck” alternative?

2. What is the net present value of the “purchase the new truck” alternative?

3. Should Bilboa Freightlines keep the old truck or purchase the new one?

In: Accounting

Lowes, a home improvement retailer, has authorized its marketing research department to make a study of...

Lowes, a home improvement retailer, has authorized its marketing research department to make a study of customers who have been issued a Lowes charge card. The marketing research department hopes to identify the significant variables that explain the variation in purchases. Once these variables are determined, the department intends to try to attract new customers who would be predicted to make a high volume of purchases. Twenty-five customers were selected at random, and values for the following variables were recorded:

y =        Average monthly purchases (in dollars) at Lowes

x1 =      Customer age

x2 =      Customer family income

x3 =      Family size

Part of the data appear in the Excel worksheet below. A regression model was developed using this sample data. The partial data and Excel regression output are provided below (complete data from all twenty-five customers was used for the analysis). Use this output to answer questions the questions that follow.

Observation

Purchase Volume ($)

Age

Family Income ($)

Family Size

1

75

42

$ 29,000

4

2

129

36

    25,000

2

3

105

38

    25,000

2

4

42

54

    17,000

3

5

17

49

    15,000

5

6

?

?

?

?

7

?

?

?

?

8

?

?

?

?

9

?

?

?

?

10

?

?

?

?

11

?

?

?

?

12

?

?

?

?

13

?

?

?

?

14

?

?

?

?

15

?

?

?

?

16

?

?

?

?

17

?

?

?

?

18

?

?

?

?

19

?

?

?

?

20

?

?

?

?

21

105

30

    26,000

2

22

121

27

    18,250

3

23

14

62

    10,250

3

24

37

50

    18,100

2

25

43

26

    24,500

4

SUMMARY OUTPUT

Regression Statistics

Multiple R

R Square

Adjusted R Square

Standard Error

32.27240363

Observations

25

ANOVA

df

SS

MS

F

Regression

Residual

21871.66876

Total

38517.76

Coefficients

Standard Error

t Stat

P-value

Intercept

87.78972947

25.46767899

Age X1

-0.970467501

0.586041665

Family Income X2

0.002334262

0.000745097

Family Size X3

-8.723322293

7.495492501

12.

Required information

           Examine the correlation matrix below.

           

Purchase Volume ($)

Age

Family Income ($)

Family Size

Purchase Volume ($)

1

Age

-0.41

1

Family Income ($)

0.46

0.05

1

Family Size

-0.24

0.50

0.27

Does there appear to be any problem with multicollinearity in this regression model? Clearly and briefly discuss the criteria you used to arrive at your answer. If multicollinearity is indicated, identify the appropriate variable(s) involved.

In: Statistics and Probability

The following table shows death rates due to chronic obstructive pulmonary disease among adult men in...

The following table shows death rates due to chronic obstructive pulmonary disease among adult men in the Southern states and Mountain states in 2005. Use this data to compare death rates due to this disease in the two regions of the country.

Death Rates Due to Chronic Obstructive Pulmonary Disease Among Adult Men by Region: 2005 (Deaths per 100,000)

Southern Region

Mountain Region

Washington, DC

41.4

Utah

64.5

Maryland

56.8

Idaho

98.1

Georgia

87.5

New Mexico

82.0

Virginia

73.5

Colorado

95.6

South Carolina

86.4

Wyoming

103.6

North Carolina

94.0

Arizona

74.1

Delaware

77.3

Nevada

95.2

Florida

66.3

Montana

98.1

West Virginia

113.6

Source: National Vital Statistics System, 2005

www.cdc.gov/mmwr/preview/mmwrhtml/mm5745a4.htm

a.   Which region had the highest mean death rate from chronic obstructive pulmonary disease? Show calculations.

b.   Calculate the median death rate due to chronic obstructive pulmonary disease in each region. Show calculations and write an interpretation for the median in each case.

c.   Describe the shape of the distribution in the Mountain states, and explain how you arrived at your description.

In: Statistics and Probability

1) Find a company whose ticker symbol contains your initials. (For example if your initials are:...

1) Find a company whose ticker symbol contains your initials. (For example if your initials are: BK, then Bank of New York Mellon (BK) or Barnes and Noble (BKS) or Ambac Financial Group (ABK) would satisfy this requirement). If you cannot find any company with your initials, then use one of your initials (you choose which) twice. So if your initial are: SV, choose a company with either 2 S’s or 2 V’s in the ticker. If there is still no suitable company, then choose any company contained in the Dow Jones Industrial Average. 2) Obtain the financial statements for the three most recent years. Usually, the financial statements are in the company’s annual report, and are on, or can be downloaded from the company’s website, or 3) For the three most recent years, analyze the Du Pont identity for your chosen company. How has ROE changed over this period? How have changes in each component of the Du Pont identity affected ROE over this period? 4) Choose two competitors of the company you chose in parts 1,2 and 3. Analyze the Du Pont identity for the competitors (over the most recent three years). How does your company’s profitability compare to the two competitors? What conclusion, if any, can you make about the condition of your chosen company?

I chose Agilent Technologies but I couldnt post their financial statement here, please go to https://www.agilent.com/about/newsroom/presrel/2017/20nov-gp17023_print.html

# # #

AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In millions, except per share amounts)
(Unaudited)
PRELIMINARY
Three Months Ended
October 31, Percent
2017 2016 Inc/(Dec)
Net revenue $ 1,189 $ 1,111 7 %
Costs and expenses:
Cost of products and services 542 523 4 %
Research and development 89 84 6 %
Selling, general and administrative 325 321 1 %
Total costs and expenses 956 928 3 %
Income from operations 233 183 27 %
Interest income 7 3 133 %
Interest expense (20 ) (19 ) 5 %
Other income (expense), net 6 (16 )
Income before taxes 226 151 50 %
Provision for income taxes 49 25 96 %
Net income $ 177 $ 126 40 %
Net income per share:
Basic $ 0.55 $ 0.39
Diluted $ 0.54 $ 0.38
Weighted average shares used in computing net income per share:
Basic 322 324
Diluted 326 328
Cash dividends declared per common share $ 0.132 $ 0.115
Years Ended
October 31, Percent
2017 2016 Inc/(Dec)
Net revenue $ 4,472 $ 4,202 6 %
Costs and expenses:
Cost of products and services 2,063 2,005 3 %
Research and development 339 329 3 %
Selling, general and administrative 1,229 1,253 (2 %)
Total costs and expenses 3,631 3,587 1 %
Income from operations 841 615 37 %
Interest income 22 11 100 %
Interest expense (79 ) (72 ) 10 %
Other income (expense), net 19 (10 )
Income before taxes 803 544 48 %
Provision for income taxes 119 82 45 %
Net income $ 684 $ 462 48 %
Net income per share:
Basic $ 2.12 $ 1.42
Diluted $ 2.10 $ 1.40
Weighted average shares used in computing net income per share:
Basic 322 326
Diluted 326 329
Cash dividends declared per common share $ 0.528 $ 0.460

In: Accounting

Thinking back to the “Practical Framework for Changing Behaviours” reading in module 1 (Health Communication Network,...

Thinking back to the “Practical Framework for Changing Behaviours” reading in module 1 (Health Communication Network, 2004), how do the constructs of the Health Belief Model and the Transtheoretical Model “fit” into the eight conditions that must be true for a person to perform that behavior?

In: Nursing

Thinking back to the “Practical Framework for Changing Behaviours” reading in module 1 (Health Communication Network,...

Thinking back to the “Practical Framework for Changing Behaviours” reading in module 1 (Health Communication Network, 2004), how do the constructs of the Health Belief Model and the Transtheoretical Model “fit” into the eight conditions that must be true for a person to perform that behavior?

In: Psychology

The Acme Company manufactures widgets. The distribution of widget weights is bell-shaped. The widget weights have...

The Acme Company manufactures widgets. The distribution of widget weights is bell-shaped. The widget weights have a mean of 60 ounces and a standard deviation of 7 ounces.

Use the Standard Deviation Rule, also known as the Empirical Rule.

Suggestion: sketch the distribution in order to answer these questions.

a) 95% of the widget weights lie between  and

b) What percentage of the widget weights lie between 53 and 74 ounces?  %

c) What percentage of the widget weights lie above 39 ?  %

In: Statistics and Probability

The Acme Company manufactures widgets. The distribution of widget weights is bell-shaped. The widget weights have...

The Acme Company manufactures widgets. The distribution of widget weights is bell-shaped. The widget weights have a mean of 64 ounces and a standard deviation of 5 ounces.

Use the Standard Deviation Rule, also known as the Empirical Rule.

Suggestion: sketch the distribution in order to answer these questions.

a) 95% of the widget weights lie between  and

b) What percentage of the widget weights lie between 59 and 74 ounces?  %

c) What percentage of the widget weights lie above 49 ?

In: Statistics and Probability

Williams & Sons last year reported sales of $74 million, cost of goods sold (COGS) of...

Williams & Sons last year reported sales of $74 million, cost of goods sold (COGS) of $60 and an inventory turnover ratio of 5. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 6 while maintaining the same level of sales and COGS, how much cash will be freed up? Do not round intermediate calculations. Round your answer to the nearest dollar.

In: Finance

Expenses -accessories ($1) -Braiding hair($2 per pack) -edge control($7) -shampoo($87.5 to make it) -conditioner($92.5 to make...

Expenses
-accessories ($1)
-Braiding hair($2 per pack)
-edge control($7)
-shampoo($87.5 to make it)
-conditioner($92.5 to make it)
-oil($30 to make it)
-bottles for shampoo and conditioner($74)
-bottles for oil($40)

Gains
-selling shampoo for $10
-selling conditioner for $12
-selling oil for $5
-Shampoo and conditioner package($20)
-Shampoo+conditioner+oil($25)

Is it possible to produce an projected income statement for a braiding company based on the information provided for the next three years

In: Accounting