Life Insurance: A life insurance company wants to estimate the probability that a 40-year-old male will live through the next year. In a sample of 7000 such men from prior years, 6993 lived through the year. Use the relative frequency approximation to estimate the probability that a randomly selected 40-year-old male will live through the next year. Round your answer to 4 decimal places.
P(he lives through the year) =????

For an auto insurance company, the average cost of collision claims is $500 per year for careful drivers and $3000 per year for poor drivers. The drivers are risk neutral and know whether they are careful or poor, but the insurance company only knows that 15% of drivers are poor. What is the insurance company's breakeven price for the collision insurance? A. $425 per year B. $450 per year C. $875 per year D. $2,625 per year

In its financial statements WalkerCo is reporting net income of $296. Its tax rate for the year was 39%. Total assets at the beginning of the year was $2,832 and at the end of the year $3,281. In the footnotes it is reported that the LIFO reserve at the beginning of the year was $465 and at the end of the year $216. If the company had used the FIFO inventory costing method, what would it have reported as its net income for the year. You may round to the nearest whole dollar.

Katie is reviewing his stock portfolio return from the last 5 years. He initially invested 100,000 and his annual returns were:

Year 1: 20.0%

Year 2: 5.0%

Year 3: -17.0%

Year 4: 15.5%

Year 5: 52.1%

What is Katies arithmatic average annual return?

What is Katies geometric average annual return?

What is the standard deviationof Katies returns for this 5 year period?

The $800 million loan carried a 6% interest rate and had the following repayment of principal schedule:

Year 1: $132 million

Year 2: $32 million

Year 3: $57 million

Year 4: $82 million

Year 5: $82 million

Year 6: $415 million

What is the present value of the term loan? What would the present value be if the compnay had chosen permanent debt instead of a term loan?

You are considering a project that requires an initial investment of $110,000 with a cost of capital of 8%. You expect the project to have a five-year life, and produce cash flows of $19,000 in year 1, $38,000 in year 2, $58,000 in year 3, $29,000 in year 4 and $10,000 in year 5.

What is this project’s Discounted Payback Period?

Group of answer choices

A. 3.96 years

B. 2.91years

C. 3.65 years

D. 3.28 years

Waylander Coatings Company purchased waterproofing equipment on January 6 for $320,000. The equipment was expected to have a useful life of four years, or 20,000 operating hours, and a residual value of $35,000. The equipment was used for 7,200 hours during Year 1, 6,400 hours in Year 2, 4,400 hours in Year 3, and 2,000 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method

A company expanded into a new market in 2010. The expansion required an investment of $100 in fixed assets per year for seven years (starting 2011). However, at the end of 2015, the company decided to terminate the project and sell off the fixed assets in place. Assume 30% tax rate and zero starting value of fixed assets. All fixed assets were depreciated following the MACRS schedule shown below. How much was the depreciation tax shield in year 2015?

Group of answer choices

$24

$17.28

None of the above

$28.27

$30

Zeebadee Inc. wants to forecast free cash flow to equity (FCFE) using the percent-of-sales method. Prior year sales were $10,000.

36. What is net borrowing in Year 4?
    1. $364.04
    2. $386.66
    3. $406.30
    4. $455.05

36. What is FCFE in Year 5?
    1. $970.78
    2. $1,005.47
    3. $1,224,62
    4. $1,318.44