Lakonishok Equipment has an investment opportunity in Europe. The project costs €12 million and is expected to produce cash flows of €2.7 million in year 1, €3.1 million in year 2, and €2.8 million in year 3. The current spot exchange rate is $1.3/€. The current risk-free rate in the United States is 5 percent, compared to that in Europe of 3.5 percent. The appropriate discount rate for the project is estimated to be 18 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 €6.5 million. What is the NPV of the project?

In order to estimate the mean 30-year fixed mortgage rate for a home loan in the United States, a random sample of 24 recent loans is taken. The average calculated from this sample is 6.80%. It can be assumed that 30-year fixed mortgage rates are normally distributed with a population standard deviation of 0.5%. Compute 95% and 99% confidence intervals for the population mean 30-year fixed mortgage rate. (Round intermediate calculations to at least 4 decimal places. Round "z" value to 3 decimal places and final answers to 2 decimal places. Enter your answers as percentages, not decimals.)

Confidence Level Confidence to Interval

95%.   ________% to  _______%

99%. ________% to  _______%

1) According to the Centers for Disease Control and Prevention (CDC), the mean total cholesterol level for persons 20 years of age and older in the United States from 2007–2010 was 197 mg/dL. a. What is the probability that a randomly selected adult from the population will have a total cholesterol level of less than 183 mg/dL? Use a standard deviation of 35 mg/dL and assume that the cholesterol levels for the population are normally distributed. b. What is the probability that a randomly selected sample of 150 adults from the population will have a mean total cholesterol level of less than 183 mg/dL? Use a standard deviation of 35 mg/dL.

Alcohol, Tobacco, and Other Drugs: Assignment

The use of alcohol tobacco and other drugs continue to take a toll on the economy, life expectancy and health care delivery system of the United States.

1. What are the 3 most common reasons individuals start using drugs?
2. Explain how “people, places and things” are related to continued drug use and explain what needs to be done regarding people, places, and things to start changing drug behavior.
3. Explain what happens in the brain when a person takes a drug. Include the terms neurotransmitters, synapse, axon, and dendrite in your answer.
4. Explain the science of how the brain can become addicted to a drug (chemical substance).

Constructing Confidence Intervals In Exercises 17 and 18, you are given the sample mean and the sample standard deviation. Assume the variable is normally distributed and use a normal distribution or a t-distribution to construct a 90% confidence interval for the population mean u. If convenient, use technology to construct the confidence intervals.

(a) In a random sample of 10 adults from the United States, the mean waste generated per person per day was 4.54 pounds and the standard deviation was 1.21 pounds. (b) Repeat part (a), assuming the same statistics came from a sample size of 500. Compare the results. (Adapted from U.S. Environmental Protection Agency)

answer

a

b

Advantages of outsourcing

Indicate whether each scenario in the following table is an example of outsourcing.

Which of the following are advantages of outsourcing? Check all that apply.

Increases degree of control

Creates opportunity for new exports

Increases technical know-how for future innovation

(a) What do we mean by a “postponement strategy”? Why can it be an effective strategy for a firm engaging mass customization?

(b) Since the 2008 global financial crisis, the B/L (“bill of lading”) of container shipments from Asian factories to the United States (US) has increasingly specified US gateway ports, rather than the local RDCs (regional distribution centers) of final markets, as the stopping points (as opposed to through points). What are the main reasons behind this development, and why?

(c) Following part (b), should the phenomenon happen more often for high-value products or for low-value products? Explain your answer.

The average LSAT score (the standardized test required to apply to law school) in the United States is µ =150 (σ = 10). Also, the LSAT is normally distributed. Use these parameters to answer the following questions:

• If someone took an LSAT test and received a 153, what proportion of scores will be less than this?
• If someone took an LSAT test and received a 143, what proportion of scores will be greater than this?
• What proportion of LSAT scores will be within the interval of 138 to 172?
• What proportion of LSAT scores will be outside the interval of 125 to 175?
• If someone wants to have an LSAT score higher than 90% of all other test-takers, what score do they need to earn?

ABC Company sells 2,976 chairs a year at an average price per chair of $161. The carrying cost per unit is $15.22. The company orders 500 chairs at a time and has a fixed order cost of $101 per order. The chairs are sold out before they are restocked. What is the economic order quantity?

Your friend from Netherlands is planning to visit you in the United States. You estimate the cost of her trip at $5,410. What is the cost to her in euros if 1 Euro = $1.4001

You can exchange $1 for either C$1.2931 or ¥138.07. What is the cross rate between the Japanese yen and the Canadian dollar? That is, solve for ¥ per C$.

In 1992, Association of Southeast Asian Nations Free Trade Area (AFTA) was applied by eliminating tariffs and non-tariff barriers between the member countries. The original members were Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand. knowing that:

• Brunei needs to import Cereal (Cereal is a homogenous good).
• The best exporter for Cereal that is United States (the price per ton is $8).
• Brunei can import Cereal from Indonesia (the price per ton is $12).
• Brunei imposed a specific tariff on its imports of Cereal accounts for $6 per ton.

Discuss the impacts of joining AFTA including Brunei and Indonesia on the foreign trade of both of Brunei, Indonesia and USA.