What is the EAC of two projects: project A, which costs $150 and is expected to last two years, and project B, which costs $190 and is expected to last three years? The cost of capital is 12%.
In: Finance
Wanda of Salty Pawz just doesn’t understand her friend Jamie sometimes. They have been working together since the first dog biscuit came out of the oven, but now that the business is expanding, she can’t seem to get Jamie motivated to compete the tasks she delegates to her. She pays Jamie a salary now, so it’s not like the old days when she was working in exchange for dog treats. She has even given Jamie more responsibility; Jamie now supervises two other employees, a challenge Wanda assumed that Jamie wanted.
One afternoon she stops Jamie in the hallway and asks her if everything is going OK. Jamie responds that things are fine. Later that same week Wanda and Jamie are meeting about an upcoming promotion they are holding at the local animal shelter. Jamie takes a few notes but doesn’t share Wanda’s enthusiasm for the event. Wanda comes right out and asks Jamie if she has lost interest in the business. Jamie shrugs and says no, she is good with everything.
Why do you think Jamie might have lost her motivation and enthusiasm for the business at this point? How could Wanda motivate Jamie more effectively? Make sure the reasons you present are supported by sound motivational theory as established by leaders in the field.
This assignment should be a minimum of one short paragraph and a maximum of two paragraphs. Word totals for this work should be in the range of 200–300 words.
In: Operations Management
Use for Questions 1-7:
Hector will roll two fair, six-sided dice at the same time. Let A = the event that at least one die lands with the number 3 facing up. Let B = the event that the sum of the two dice is less than 5.
1. What is the correct set notation for the event that “at least one die lands with 3 facing up and the sum of the two dice is less than 5”?
2. Calculate the probability that at least one die lands with 3 facing up and the sum of the two dice is less than 5.
3. What is the correct set notation for the event that “at least one die lands with 3 facing up if the sum of the two dice is less than 5”?
4. Calculate the probability that at least one die lands with 3 facing up if the sum of the two dice is less than 5.
5. What is the correct set notation for the event that “the sum of the two dice is not less than 5 if at least one die lands with 3 facing up”?
6. Calculate the probability that the sum of the two dice is not less than 5 if at least one die lands with 3 facing up. 7. Are A and B independent? Explain your reasoning.
Use for question 10: A particular type of scan is used to try to determine whether brain tumors are cancerous or not. Each time a tumor is scanned, the result is reported as either “positive”, “negative” or “inconclusive”. Among tumors that are cancerous, 68% of scans are “positive”, 28% of scans are “inconclusive”, and 4% of scans are “negative”. Among tumors that are NOT cancerous, 60% of scans are “negative”, 37% of scans are “inconclusive” and 3% of scans are “positive”. Historically, among all brain tumors, 67% are not cancerous.
10. If a tumor is scanned and the result is labeled as “inconclusive” what is the probability that the tumor is not cancerous?
In: Statistics and Probability
Suppose there are two firms in a market who each simultaneously choose a quantity.Firm 1's quantity is q1, and firm 2's quantity is q2. Therefore the market quantity is Q= q1+q2. The market demand curve is given by P=130-Q. Also, each firm has constant marginal cost equal to 25. There are no fixed costs. Marginal revenue of the firms are given by MR1=130-2q1-q2 & MR2=130-q1-2q2.
A) How much output will each firm produce in the Cournot equilibrium ?
B) What will be the market price of the good?
C) What is DWL that results from this duopoly?
D) How much profit does each firm make?
E) Suppose Firm 2 produced 20 units of output. How much output should Firm 1 produce in order to maximize profit?
In: Economics
Assume a stock market with only two assets: one risky, one risk-free.
Assume two investors who are identical, except for their degree of risk aversion. (Same wealth, same investment horizon, etc.)
Investor A has a degree of risk aversion of 1.5, while investor B has a degree of risk aversion of 5.
Describe how their investment portfolio will differ
In: Finance
Assume a stock market with only two assests: one risky, one risk-free.
Assume two investors who are identical, except for their degree of risk aversion. (Same wealth, same investment horizon, etc.)
Investor A has a degree of risk aversion of 1.5, while investor B has a degree of risk aversion of 5.
Describe how their investment portfolio will differ?
In: Finance
1a. The last dividend Company X paid was $ 5 and the constant growth rate of dividends is 2%. The current price of this stock is $20 per share. What is the required rate of return (yield) on that stock?
| A |
27.5% |
|
| B |
15% |
|
| C |
8% |
|
| D |
35% |
1b. Your first investment is Stock A. 3 years ago you bought Stock A from $20 and sold it now at $25. Over the three years you received a cash dividend of $3.
Your second investment is Stock B. 4 years ago you bought Stock B from $31 and sold it now at $40. Over the four years you received a cash dividend of $5.
Which one is a better investment?
| A |
Stock A |
|
| B |
Stock B |
|
| C |
You are indifferent because both Stock A and Stock B had the same financial performance. |
|
| D |
None |
1c. A preferred stock is paying annual dividend of $5 forever. What is the price of this preferred stock if the yield (required rate of return on this preferred stock) is 10%?
| A |
$ 2 |
|
| B |
$ 20 |
|
| C |
$ 5 |
|
| D |
$ 50 |
In: Finance
Match the following with the correct answer.
A. Loss of electrons: A + B rightwards arrow C + D + e-
B. Gain of electrons: A + B + e- rightwards arrow C + D
C. The substance that is oxidized and donates electrons.
D. The substance that is reduced and accepts electrons.
E. Mg rightwards arrow Mg2+ + 2e- Poor magnesium just lost 2 electrons. Is this an oxidation or a reduction?
F. O2 + 4e- rightwards arrow 2O2- Wow, oxygen just gained 4 electrons. Is this an oxidation or a reduction?
1. Oxidation
2. Reducing agent
3. Reduction
4. Oxidizing agent
In: Chemistry
The air temperature is measured every 6 hours for one week. The temperatures are given in the data table. Use the data to complete parts a through c below.
Data# Temperature
1 42.8
2 55.6
3 41.3
4 44.6
5 43.4
6 58.5
7 46.1
8 45.6
9 41.6
10 59.9
11 51.1
12 46.3
13 54.6
14 56.2
15 54.9
16 43.2
17 51.7
18 51.8
19 49.8
20 47.4
21 46.2
22 55.2
23 51.9
24 41.3
25 50.2
26 59.8
27 49.3
28 48.4
a. Draw a systematic sample consisting of 2 temperatures, and then calculate the sampling error for the sample.
The sampling error for the sample is ___degreesF. (Round to two decimal places as needed.)
b. Draw a systematic sample consisting of 4 temperatures, and then calculate the sampling error for the sample.
The sampling error for the sample is ___degreesF. (Round to two decimal places as needed.)
c. Draw a systematic sample consisting of 7 temperatures, and then calculate the sampling error for the sample.
The sampling error for the sample is negative _____degreesF. (Round to two decimal places as needed.)
In: Statistics and Probability
Structuring a Make-or-Buy Problem
Fresh Foods, a large restaurant chain, needs to determine if it would be cheaper to produce 5,000 units of its main food ingredient for use in its restaurants or to purchase them from an outside supplier for $12 each. Cost information on internal production includes the following:
| Total Cost | Unit Cost | ||
| Direct materials | $25,000 | $ 5.00 | |
| Direct labor | 15,000 | 3.00 | |
| Variable manufacturing overhead | 7,500 | 1.50 | |
| Variable marketing overhead | 10,000 | 2.00 | |
| Fixed plant overhead | 30,000 | 6.00 | |
| Total | $87,500 | $17.50 |
Fixed overhead will continue whether the ingredient is produced internally or externally. No additional costs of purchasing will be incurred beyond the purchase price.
Required:
1. What are the alternatives for Fresh
Foods?
Make the ingredient in house or buy it externally.
2. List the relevant cost(s) of internal production and of external purchase.
All of the above
3. Which alternative is more cost
effective?
Make the ingredient in-house
By how much?
$
4. Now assume that 20% of the fixed overhead
can be avoided if the ingredient is purchased externally. Which
alternative is more cost effective?
Buy
By how much?
$
Determining the Optimal Product Mix with One Constrained Resource
Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $5 and $15, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each Rufus sweatshirt requires 20 minutes of machine time.
Assume that there are no other constraints.
Required:
1. What is the contribution margin per hour of machine time for each type of sweatshirt? When computing your answers, round machine time per unit to two decimal places. Round your final answers to the nearest dollar.
| Contribution Margin | |
| Swoop | $ 50 |
| Rufus | $ 45 |
2. What is the optimal mix of sweatshirts? If an amount is zero, enter "0".
| Optimal Mix | |
| Swoop | units |
| Rufus | units |
3. What is the total contribution margin earned
for the optimal mix?
$
Determining the Optimal Product Mix with One Constrained Resource and a Sales Constraint
Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $5 and $15, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each Rufus sweatshirt requires 20 minutes of machine time.
Assume that a maximum of 40,000 units of each sweatshirt can be sold.
Required:
1. What is the contribution margin per hour of machine time for each type of sweatshirt? When computing your answers, round machine time per unit to two decimal places. Round your final answers to the nearest dollar.
| Contribution Margin | |
| Swoop | $ 50 |
| Rufus | $ 45 |
2. What is the optimal mix of sweatshirts? When computing your answers, round machine time per unit to two decimal places. Round your final answers to the nearest whole unit.
| Optimal Mix | |
| Swoop | units |
| Rufus | units |
3. What is the total contribution margin earned
for the optimal mix?
$
In: Accounting