Seven different financing plans with their D-E mixes and costs of debt and equity capital for a new innovations project are summarized below. Use the data to determine what mix of debt and equity capital will result in the lowest WACC.

D-E mix of_____ %–_____ % has the lowest WACC value.

The project will last for 8 years, beginning in 2011 (year 0) and ending in 2019 (year 8). Depreciation is straight line to zero, and taxation (at the time) is 35% in the United States. In any year with a negative EBIT, there is no tax. The capital investment for the fibre line project is $350,000,000 (invested in year 0), including costs of amplification sites, earthmoving equipment, easements etc. Working capital is expected to be $60,000,000, returned at the end of the project. A 24 hours a day, 7 days a week maintenance team is required to ensure 99.99% operational capacity, costing $60 million per year, and increasing at 3% per year. The project success hinges on access to the fibre ports in the exchanges, they know this and charge $50,000,000 per year (combined), declining by 5% p.a. as demand declines.      A team of surveyors and builders who inspected the 1400 km path cost $1.5 million. At the end of the project, the technology is obsolete for its purpose in investment banking, but it can be sold to a telecom provider (contributing to the revenue for year 8) for $127,000,000. Revenue is subscription based at $3,600,000 per year, per subscription. In year 1 there will be 200 subscriptions, year 2 is 150, year 3 is 100, year 4 is 50. In year 5, 6, 7, 8 only 20 subscriptions are taken in per year. The all-important discount rate is 14.5%.

Question: What is the NPV and IRR using excel?

Find a 90% confidence interval for a population mean μ for these values. (Round your answers to three decimal places.)

(a) n = 130, x = 0.82, s² = 0.085

______ to _______

(b) n = 40, x = 22.7, s² = 3.19

______ to ________

An investigation has been completed, similar to the one on latent heat of fusion, where steam is bubbled through a container of water. Steam condenses and the lost energy heats the water and container. Given the following data, do the calculations requested.    Mass of the aluminum container 50 g Mass of the container and water 250 g Mass of the water 200 g Initial temperature of the container and water 20°C Temperature of the steam 100°C Final temperature of the container, water, and condensed steam 50°C Mass of the container, water, and condensed steam 261 g Mass of the steam 11 g Specific heat of aluminum 0.22 cal/g°C    Find the Heat energy gained by the water.

Kodiak Construction Company has experienced generally steady growth since its inception in 1953. Management is proud of its record of having maintained or increased its earnings per share in each year of its existence.

The economic downturn has led to disturbing dips in revenues the past two years. Despite concerted cost-cutting efforts, profits have declined in each of the two previous years. Net income in 2016, 2017, and 2018 was as follows:

A major shareholder has hired you to provide advice on whether to continue her present investment position or to curtail that position. Of particular concern is the declining profitability, despite the fact that earnings per share has continued a pattern of growth:

She specifically asks you to explain this apparent paradox. During the course of your investigation you discover the following events:

• For the decade ending December 31, 2015, Kodiak had 60 million common shares and 20 million shares of 8%, $10 par nonconvertible preferred stock outstanding. Cash dividends have been paid quarterly on both.
• On July 1, 2017, half the preferred shares were retired in the open market. The remaining shares were retired on December 30, 2017.
• $55 million of 8% nonconvertible bonds were issued at the beginning of 2018, and a portion of the proceeds were used to call and retire $50 million of 10% debentures (outstanding since 2013) that were convertible into 9 million common shares.
• In 2016, management announced a share repurchase plan by which up to 24 million common shares would be retired. 12 million shares were retired on March 1 of both 2017 and 2018.
• Kodiak’s income tax rate is 40% and has been for the last several years.

Required:

Explain the apparent paradox to which your client refers. Include calculations that demonstrate your explanation.

1. Two spheres, one solid, one a thin shell, each have a mass of 0.89 kg and a radius of 11 cm. They are given the same torque of 0.13 mN acting for 7 s. Which sphere is rotating faster?

The percentage of income spent on housing (including mortgage/rent, taxes, utilities) is an important factor loan agents use in approving customers for mortgages. A researched selected a sample of 20 homeowners in Florida and calculated their total housing costs are a percent of their monthly income. The researcher collected this information from the same 20 homeowners 5 years ago and again in 2019. The information collected is in the attached Excel data file. Is it reasonable to conclude the percent is less now than five years ago? Use a two-sample test of hypothesis to determine your answer. Explain and show your work, including the 6 steps for hypothesis testing.

The CEO of Garneau Cinemas is considering making a movie and must decide between a comedy and a thriller—it ​doesn't have the production space to make both. The comedy is expected to cost $25 million up front​ (at t​ = 0). After​ that, it is expected to make 16 million in the first year​ (at t​ = 1) and $44 million in each of the following two years​ (at t​ = 2 and t​ = 3). In the fourth year​ (at t​ = 5), it is expected that the movie can be sold into syndication for ​$22 million with no further cash flows back to Garneau Cinemas. The thriller is expected to cost ​$40 million up front​ (at t​ = 0). After​ that, it is expected to make $20 million in the first year​ (at t​ = 1) and $44 million in each of the following four years​ (at t​ = 2,​ 3, 4, and​ 5). In the sixth year​ (at t​ = 6), it is expected that the movie can be sold into syndication for $30 million with no further cash flows back to Garneau Cinemas. The cost of capital is 11​%,and Garneau usually requires projects to have a payback within four years. Determine each​ project's payback and​ NPV, and advise the CEO what she should do.

a) The payback for the comedy is _____ ​years, and the NPV of the comedy is $_____?

b) The payback for the thriller is _____ ​years, and the NPV of the thriller is $_____?

During our morning commute we encounter two traffic lights which are distant from one another and may be assumed to operate independently. There is a 50% chance that we will have to stop at the first of the lights, and there is a 30% chance that we’ll be stopped by the second light. Find the probability that we are stopped by at least one of the lights

1. A ball hanging from the ceiling by a string swings in a circle. If the radius of the circle it traces is 2 meters and its distance from the ceiling is 5 meters, what is the velocity of the ball?

2. Assuming an iced over road (no friction), if a car is going 25 m/s around a curve in the road of radius 75 meters, what is the perfect angle to bank the road so that the car stays on the road?

3. A block starts at rest and slides down a 3 meter long incline plane at 30 degrees in 3 seconds. Calculate the coefficient of kinetic friction between the block and the incline plane. Hint: use kinematics to find the acceleration, then use a force diagram to solve for the coefficient of kinetic friction.

4. A block of mass 10kg slides on an incline plane of 30 degrees while attached to a second mass of 2kg by a rope. The rope runs through a pulley and the second mass is hanging from the top of the ramp (as the problem we worked in class). Define the positive direction such that the first mass slides down the ramp. The coefficient of kinetic friction between the first mass and the incline plane is 0.1. Calculate the acceleration of the two mass system.  

5. A block slides down an incline plane of 20 degrees. The coefficient of kinetic friction between the block and incline is 0.25. Calculate the resulting acceleration.