Comparison of returns. WG Investors is looking at three different investment opportunities. Investment one is a​ five-year investment with a cost of ​$410 and a promised payout of ​$820 at maturity. Investment two is a​ seven-year investment with a cost of ​$410 and a promised payout of ​$1 comma 025. Investment three is a​ ten-year investment with a cost of ​$410 and a promised payout of ​$1 comma 845. WG Investors can take on only one of the three investments. Assuming that all three investment opportunities have the same level of​ risk, calculate the effective annual return for each​ investment, and select the best investment choice.

Marilyn Helm Retailers is attempting to decide on a location for a new retail outlet. At the​ moment, the firm has three​ alternatives: stay where it is but enlarge the​ facility; locate along the main street in nearby

Newbury​;

or locate in a new shopping mall in

Hyde Park.

The company has selected the four factors listed in the following table as the basis for evaluation and has assigned weights as​ shown:

​a) Based on the given​ information, the best location for Marilyn Helm Retailers is to open the new retail outlet in

Hyde Park

​, with a total weighted score of

54.5054.50.

​(Enter your response rounded to two decimal​ places.)

​b) A new subway station is scheduled to open across the street from the present location in about a​ month, so its third factor score should be raised to

40.

​Then, the best location for Marilyn Helm Retailers is to open the new retail outlet in

Hyde Park

Hyde Park

Newbury

Present Location

​, with a total weighted score of

nothing.

​(Enter your response rounded to two decimal​ places.)

2. The company is considering a project involving the purchase of new equipment. Change the data area of your worksheet to match the following:

a. What is the net present value of the project? (Negative amount should be indicated by a minus sign. Round all other intermediate calculations to nearest whole dollar.)

Net present value ?:____________

b. The internal rate of return is between what two whole discount rates (e.g., between 10% and 11%, between 11% and 12%, between 12% and 13%, between 13% and 14%, etc.)?

the international rate of return is between _______and _______

c. Reset the discount rate to 13%. Suppose the salvage value is uncertain. How large would the salvage value have to be to result in a positive present value?

min. salvage value required to generate a postive present value_______________-

Kinston Industries has come up with a new mountain bike prototype and is ready to go ahead with pilot production and test marketing. The pilot production and test marketing phase will last for one year and cost $500,000. Your management team believes that there is a 50% chance that the test marketing will be successful and that there will be sufficient demand for the new mountain bike. If the test-marketing phase is successful, then Kinston Industries will invest $3 million in year one to build a plant that will generate expected annual after tax cash flows of $400,000 in perpetuity beginning in year two. If the test marketing is not successful, Kinston can still go ahead and build the new plant, but the expected annual after tax cash flows would be only $200,000 in perpetuity beginning in year two. Kinston has the option to stop the project at any time and sell the prototype mountain bike to an overseas competitor for $300,000. Kinston's cost of capital is 10%.

A) Assuming that Kinston has the ability to sell the prototype in year one for $300,000

The NPV of the Kinston Industries Mountain Bike Project is _________$. (round to full dollar)

B) Assuming that Kinston does not have the ability to sell the prototype in year one for $300,000,

the NPV of the Kinston Industries Mountain Bike Project is __________$. (round to full dollar)

C) Assuming that Kinston has the ability to ignore the pilot production and test marketing and to go ahead and build their manufacturing plant immediately.

Suppose that the probability of high or low demand is still 50%, then the NPV of the Kinston Industries Mountain Bike Project is ____________$. (round to full dollar)

D) Assuming that Kinston has the ability to ignore the pilot production and test marketing and to go ahead and build their manufacturing plant immediately.

Suppose that the probability of high or low demand is still 50%. What is the value of the option to do pilot production and test marketing? The value is _______$. (round to full dollar)

1. Find P₃₃ , min-value, Q₁ , median, Q₃ , and maximum of the following set of numbers:

36, 39, 39, 41, 43, 44, 44, 47, 50, 53, 54, 55, 56, 56, 57, 58, 59, 61, 61, 65, 69, 69, 70, 77

An engineer is going to redesign an ejection seat for an airplane. The seat was designed for pilots weighing between 130 lb and 191 lb. The new population of pilots has normally distributed weights with a mean of 140 lb and a standard deviation of 26.2 lb.

a. If a pilot is randomly​ selected, find the probability that his weight is between 130 lb and 191 lb. The probability is approximately nothing. ​(Round to four decimal places as​ needed.)

b. if 40 different pilots are randomly selected, find the probability that their mean weight is between 130 lb and 191 lb.

.2. The price of a stock is $40. The price of a one-year European put option on the stock with a strike price of $30 is quoted as $7 and the price of a one-year European call option on the stock with a strike price of $50 is quoted as $5. Suppose that an investor buys 100 shares, shorts 100 call options, and buys 100 put options.

Draw a diagram illustrating how the investor’s profit or loss varies with the stock price over the next year. How does your answer change if the investor buys 100 shares, shorts 200 call options, and buys 200 put options?

Two computers have 7-stage fetch-execute cycles where branches are determined in stage 4. One computer is not pipelined, and the other is pipelined. Assuming that tp = 1, answer the following questions when running a program with 50,000 instructions where 1,000 of the instructions are conditional branches and each branch, if taken, skips over 10 instructions.a.How much faster is the pipelined machine over the non-pipelined machine assuming that no branches are taken.b.How much faster is the pipelined machine over the non-pipelined machine assuming that all branches are taken.c.Bonus question: How many branches would the program have to have assuming every branch is taken (and every branch skips over 10 instructions) for the non-pipelined machine to execute the program in the same time as the pipelined machine?

1. A school administrator sends out grade school students to sell boxes of candy to raise funds. Below is a selection of four students and the mean number of boxes they sold over a weekend. The administrator wants to calculate the average number of boxes sold across students, but wants to weight this by the number of nearby houses (because students with more houses nearby will sell more boxes). For these data, what is the weighted mean?

2.

What is the average expected number of songs from this sample? (the mean of the probability distribution)

3.

What is the standard deviation of the number of songs from this sample? (the SD of the probability distribution)

4.

What number is at the 55th percentile? (You may round to a whole number for the answer)

On January 1, 2018, Water Wonderland issues $20 million of 7% bonds, due in seven years, with interest payable semiannually on June 30 and December 31 each year. Use Table 2 and Table 4.

1. If the market rate is 6%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price.

2. If the market rate is 7%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price.

3. If the market rate is 8%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price.