Lakonishok Equipment has an investment opportunity in Europe. The project costs €9 million and is expected to produce cash flows of €1.8 million in year 1, €3.7 million in year 2, and €4.1 million in year 3. The current spot exchange rate is $1.21/€; the current risk-free rate in the United States is 5 percent, compared to that in Europe of 4.6 percent. The appropriate discount rate for the project is estimated to be 10 percent, the U.S. cost of capital for the company. In addition, the subsidiary can be sold at the end of three years for an estimated €8.2 million. What is the NPV of the project? Multiple Choice
$6,381,974.92
$739,338.40
$6,136,514.35
$5,891,053.78
$5,808,832.55
In: Finance
The S&P 500, or simply the S&P, is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States.
define an adequate investment strategy, and select the assets they would invest to start with.
-the potential customer profile specifications (SAP 500),
-the portfolio objectives
-the investment policies (strategic allocation)
-The choice and justification of a benchmark
-a trial portfolio based on the team investment guidelines
-a brief evaluation on each of the equity securities selected
At this initial phase, you are to limit the number of equity securities purchases to five only.
Please write 500-700 words minimum and in details
In: Accounting
Amstat News (December 2004) lists median salaries for associate professors of statistics at research institutions and at liberal arts and other institutions in the United States. Assume a sample of 200 associate professors from research institutions having an average salary of $70,750 per year with a standard deviation of $6000. Assume also a sample of 200 associate professors from other types of institutions having an average salary of $65,200 with a standard deviation of $5000. Test the hypothesis that the mean salary for associate professors in research institutions is $2000 higher than for those in other institutions. Use a 0.01 level of significance.
confused for what the alternative hypothesis is...
In: Statistics and Probability
Over a 20-year period, the average sentence given to defendants convicted of aggravated assault in the United States was 25.9 months. Assume this to be your population mean. Because you think it might be different in your home state, you conduct a little study to examine this question. You take a random sample of 175 jurisdictions in your home state and find that the mean sentence for aggravated assault is 27.3 months, with a standard deviation of 6.5. Test the null hypothesis that the mean sentence length in your state is 25.9 months against the alternative hypothesis that it is different from that. Set your alpha level at .01.
In: Statistics and Probability
The ABC insurance INC. reports that the mean annual premium for automobile insurance in the United States was $1608 in summer 2018. However, you believed automobile insurance was cheaper in North Carolina and decided to develop statistical support for your opinion. A sample of 25 automobile insurance policies from the state of North Carolina showed a mean annual premium of $1560 with a standard deviation of s = $165. a. Develop a hypothesis test that can be used to determine whether the mean annual premium in North Carolina was lower than the national mean annual premium. b. At a = .05, test for a significant difference. What is your conclusion?
In: Statistics and Probability
1)
A) A manufacturer knows that their items have a normally
distributed lifespan, with a mean of 3 years, and standard
deviation of 0.6 years.
If you randomly purchase one item, what is the probability it will
last longer than 2 years?
Use the normal table and round answer to four decimal places
B) In the country of United States of Heightlandia, the height
measurements of ten-year-old children are approximately normally
distributed with a mean of 56.8 inches, and standard deviation of
4.6 inches.
What is the probability that the height of a randomly chosen child
is between 60.8 and 62.1 inches?
Use the Normal table and give answer to 4 decimal places
In: Statistics and Probability
1. Define compensating differential and give original examples (not already included in the book or power points) of different jobs that earn higher wages and some that earn lower wages because of compensating differentials.
2. Go to the Education Pays (Links to an external site.) page on the Bureau of Labor Statistics website. Compare and contrast the different levels of education in relation to average wage and unemployment rate.
3. Explain the benefits of higher education in terms of the unemployment rate and average salary figures in the United States per the Education Pays chart.
4. How does this reflect on your own decision to invest in your human capital?
In: Economics
Choose one of the Opinion Poll questions (click here for a list of the questions) and discuss the justification for your view and how you think it fits in with the values of American political society. Initial Posting: 200-400 words. Please give me a good example and good explanation. Please do not copy and paste. thank you
question 1: Taxes on the wealthy should be increased in order to
reduce the federal deficit without cung social programs.
question 2:The United States should send foreign aid to other
countries to reduce poverty and help solve other deep social
programs experienced by the poorer naons
In: Economics
Using survey data to calculate statistics can be extremely valuable, but you must also make sure that the sample and questions are unbiased. Design a pair of questions that are related to the same healthcare issue: one that is unbiased and another that would result in a bias in one direction or the other. Examples: Do you think that the rate of type II diabetes diagnoses will increase over the next 10 years? Given the large increase in childhood obesity in the United States, do you think that type II diabetes diagnoses will increase over the next 10 years? Discuss why it is important to create a truly unbiased sample and survey questions.
In: Statistics and Probability
Discuss the pros and cons of having a strong dollar. Until recently, Los Angeles lost revenue and jobs to Canada because the strength of the American dollar made it cost-efficient to move movie and television production out of the country. (It should be noted that Canada also made some fiscal concessions to encourage this change of venue.) However, by 2008, the dollar had weakened so significantly that China was persuaded to announce it could no longer export rice profitably to the United States. Clearly, whether the dollar is weak or strong, there will be winners and losers in the equation. Can you think of any suggestions for equalizing the gains and losses experienced on both sides?
In: Finance