Questions
Part 1 Johnson Transformers Inc. Following is the seven-year forecast for a new venture called Johnson...

Part 1

Johnson Transformers Inc. Following is the seven-year forecast for a new venture called Johnson Transformers: (all amounts in $000) 2020 2021 2022 2023 2024 2025 2026 EBIT $(1000) $(900) $200 $1,200 $2,500 $3000 $3,050 Capital Expenditures $550 $350 $200 $175 $175 $160 $150 Changes in Working Capital $400 $300 $200 $100 $100 ($100) ($100) Depreciation $40 $80 $125 $150 $150 $150 $150 Beginning after year 2026 the annual growth in EBIT is expected to be 1.5%, a rate that is projected to be constant over Johnson Transformers remaining life as an enterprise. Beginning in 2026 Johnson's Transformers capital expenditures and depreciation are expected to offset each other (capex - depreciation = 0) and year to year changes in working capital are expected to be zero (working capital levels remain constant year over year). For discounting purposes consider 2020 as year 1. Assume a tax rate is 21% and a cost of capital of 7.75% Question 1: Determine the NPV of Johnson Transformers Free Cash Flow for the years 2020 -2026. HINT: Remember to account for loss carry-forwards when determining income taxes. The answer to this question was determined in Excel. Your answer may deviate slightly depending upon differences in truncation and rounding. Answers below are in $000.

Part 2

Calculate the fair market value (NPV) for Johnson Transformers. For this problem assume that the Net Present Value of Johnson Transformers free cash flow for the period 2020 - 2026 is $3000 (NOTE its not $3000 but make this assumption in case the answer you determined in the first question was incorrect. Assume no underlying changes to any of the data in the problem. DO NOT USE YOUR ANSWER FROM THE QUESTION ABOVE. All ANSWERS ARE IN $000

In: Finance

Railback Battery Systems Following is the seven-year forecast for a new venture called Railback Battery Systems:...

Railback Battery Systems Following is the seven-year forecast for a new venture called Railback Battery Systems:

Year 2020 2021 2022 2023 2024 2025 2026
EBIT ($1,000) ($900) $200 $1,200 $2,500 $3,000 $3,050
Capital Expenditures $550 $350 $200 $175 $175 $160 $150
Changes in Working Capital $400 $300 $200 $100 $100 ($100) ($100)
Depreciation $40 $80 $125 $150 $150 $150 $150

Part 1:

Beginning after year 2026 the annual growth in EBIT is expected to be 1.5%, a rate that is projected to be constant over Railback's life as an enterprise. Beginning in 2026 Railback's capital expenditures and depreciation are expected to offset each other (capex - depreciation = 0) and year to year changes in working capital are expected to be zero (working capital levels remain constant year over year). For discounting purposes consider 2020 as year 1. Assume a tax rate is 21% and a cost of capital of 7.75% Question: Determine the NPV of Railback Battery Systems Free Cash Flow for the years 2020 - 2026. HINT: Remember to account for loss carry-forwards when determining income taxes. The answer to this question was determined in Excel. Your answer may deviate slightly depending upon differences in truncation and rounding. Answers below are in $000.

Part 2:

Calculate the fair market value (NPV) for Railback Battery Systems. For this problem assume that the Net Present Value of Railback's free cash flow for the period 2020 - 2026 is $3000 (NOTE its not $3000 but make this assumption in case the answer you determined in the first question was incorrect. Assume no underlying changes to any of the data in the problem. DO NOT USE YOUR ANSWER FROM THE QUESTION ABOVE. All ANSWERS ARE IN $000

In: Finance

Question 5 (1 point) Do sit down restaurant franchises and fast food franchises differ significantly in...

Question 5 (1 point)

Do sit down restaurant franchises and fast food franchises differ significantly in stock price? Specifically, is the average stock price for sit-down restaurants greater than the average stock price for fast food restaurants? A hypothesis test for two independent samples is run on data recorded from the stock exchange and a p-value is calculated to be 0.4864. What is the appropriate conclusion?

Question 5 options:

1)

We did not find enough evidence to say a significant difference exists between the average stock price of sit-down restaurants and the average stock price of fast food restaurants.

2)

We did not find enough evidence to say the average stock price of sit-down restaurants is less than the average stock price of fast food restaurants.

3)

The average stock price of sit-down restaurants is significantly greater than the average stock price of fast food restaurants.

4)

We did not find enough evidence to say the average stock price of sit-down restaurants is greater than the average stock price of fast food restaurants.

5)

The average stock price of sit-down restaurants is less than or equal to the average stock price of fast food restaurants.

Question 6 (1 point)

A medical researcher wants to examine the relationship of the blood pressure of patients before and after a procedure. She takes a sample of people and measures their blood pressure before undergoing the procedure. Afterwards, she takes the same sample of people and measures their blood pressure again. If the researcher wants to test if the blood pressure measurements after the procedure are different from the blood pressure measurements before the procedure, what will the null and alternative hypotheses be? Treat the differences as (blood pressure after - blood pressure before).

Question 6 options:

1)

HO: μD ≥ 0
HA: μD < 0

2)

HO: μD ≠ 0
HA: μD = 0

3)

HO: μD = 0
HA: μD ≠ 0

4)

HO: μD > 0
HA: μD ≤ 0

5)

HO: μD ≤ 0
HA: μD > 0

Question 7 (1 point)

A new gasoline additive is supposed to make gas burn more cleanly and increase gas mileage in the process. Consumer Protection Anonymous conducted a mileage test to confirm this. They took a sample of their cars, filled it with regular gas, and drove it on I-94 until it was empty. They repeated the process using the same cars, but using the gas additive. Using the data they found, they performed a paired t-test with data calculated as (with additive - without additive). If they want to test whether mileage with the additive is greater than mileage without the additive, what are the hypotheses for this test?

Question 7 options:

1)

HO: μD ≥ 0
HA: μD < 0

2)

HO: μD < 0
HA: μD ≥ 0

3)

HO: μD = 0
HA: μD ≠ 0

4)

HO: μD ≤ 0
HA: μD > 0

5)

HO: μD > 0
HA: μD ≤ 0

Question 8 (1 point)

You are looking for a way to incentivize the sales reps that you are in charge of. You design an incentive plan as a way to help increase in their sales. To evaluate this innovative plan, you take a random sample of 48 of your reps and their weekly incomes before and after the plan were recorded. You calculate a difference in income as (after incentive plan - before incentive plan). You are interested in if sales after the program are different from sales before the program. You perform a paired samples t-test with the hypotheses of Null Hypothesis: μD = 0, Alternative Hypothesis: μD ≠ 0. You see that the average difference in sales was $7.2 with a standard deviation of $185.58. What is the test statistic and p-value of this test?

Question 8 options:

1)

Test Statistic: 0.269, P-Value: 0.3945

2)

Test Statistic: 0.269, P-Value: 0.6055

3)

Test Statistic: 0.269, P-Value: 0.789

4)

Test Statistic: 0.269, P-Value: 1.6055

5)

Test Statistic: -0.269, P-Value: 0.789

Question 9 (1 point)

You are looking for a way to incentivize the sales reps that you are in charge of. You design an incentive plan as a way to help increase in their sales. To evaluate this innovative plan, you take a random sample of 50 of your reps and their weekly incomes before and after the plan were recorded. You calculate a difference in income as (after incentive plan - before incentive plan). You are interested in if sales after the program are greater than sales before the program. You perform a paired samples t-test with the hypotheses of Null Hypothesis: μD ≤ 0, Alternative Hypothesis: μD > 0. You see that the average difference in sales was $-14.33 with a standard deviation of $281.86. What is the test statistic and p-value of this test?

Question 9 options:

1)

Test Statistic: -0.359, P-Value: 0.36

2)

Test Statistic: 0.359, P-Value: 0.36

3)

Test Statistic: -0.359, P-Value: 1.28

4)

Test Statistic: -0.359, P-Value: 0.64

5)

Test Statistic: 0.359, P-Value: 0.64

In: Statistics and Probability

prepaid insurance account has a balance of 9350 remaining in October 31 2011 of two year...

prepaid insurance account has a balance of 9350 remaining in October 31 2011 of two year policy purchased in April 2010
the calculation was like that
9350 /17 550
prepaid insurance for year
550 *12 = 6600 and was the right amount but why they made it that way

In: Accounting

Reflect on the section Planning and Executing Change Effectively, in Chapter 7 of the text (book)...

Reflect on the section Planning and Executing Change Effectively, in Chapter 7 of the text (book) Carpenter, M., Bauer, T., & Erdogan, B. (2010). Management Principles, v. 1.1. Summarize the key steps in planning and executing change in a 500 word or more journal entry.

In: Operations Management

On May 1, 2007, Lisa deposited $792 in an account earning simple discount at an annual...

On May 1, 2007, Lisa deposited $792 in an account earning simple discount at an annual rate d. On May 1, 2014, Lisa's balance was 1287.8. How much interest did Lisa earn between May 1, 2007, and May 1, 2010?

In: Finance

Assume that a stock's price was $15 in 2010, $20 in 2011, $24 in 2012, $21...

Assume that a stock's price was $15 in 2010, $20 in 2011, $24 in 2012, $21 in 2013, and $28 in 2014.

Find the following:

a) The return of the stock in each year

b) The (arithmetic) average of returns

c) The Geometric average of returns

d) The variance and standard deviation of returns

In: Finance

Analyze the time-series data of Balance of Payment of China (Since 2010). Discuss the trend of...

Analyze the time-series data of Balance of Payment of China (Since 2010). Discuss the trend of changes in current, capital and financial accounts. Based on your observation, with other external economic information, what shall the policymakers do in responding to these changes? (800 - 900) words

In: Economics

CONSUMER LAW ( please write the references of detail at the end ) CONSUMER GUARANTEES –...

CONSUMER LAW ( please write the references of detail at the end )

CONSUMER GUARANTEES – Schedule 2 of the Competition and Consumer Act 2010 (Cth) (“the ACL”)

Explain the rule that goods must be reasonably fit for any disclosed purpose.

Can the consumer guarantees be excluded under the ACL?

In: Operations Management

Data on all residential homes sales in Ames Iowa between 2006 and 2010. The data set...

Data on all residential homes sales in Ames Iowa between 2006 and 2010. The data set contains many explanatory variables on the quantity of physical attributes of residential homes in Iowa sold between 2006 and 2010. Most of the variables describe information a typical home buyer would like to know about a property (square footage, number of bedrooms, size of a lot, etc.)

Now use the Lot.Area

a. Use summary command to see descriptive statistics of Lot.Area

b. what is the mean and median of Lot.Area. Explain Comment on it.

c. Get the histogram of Lot.Area What do you observe?

d. Create new data set for Lot.Area where Lot.Area is than 20000.

e. Get the histogram of the new data for Lot.Area. What do you see? How is it distributed

(Need this in R Script commands)

In: Statistics and Probability