Jorge was at the park playing with friends. He found a typical die with 6 sides on the ground. He took it home and rolled it 100 times and recorded the results (found in the table below). He wanted to see if the die was a 'fair die' or if it was weighted on one side so somone could cheat when playing games!

Is this a 'fair die' or has it been tampered with? Test at the α=0.05 level of significance.

Which would be correct hypotheses for this test?

H0:μ1=μ2

; H1:μ1≠μ2
H0:
The die is a fair die; H1:
The die has been tampered with
H0:p1=p2
; H1:p1≠p2
H0:
The die has been tampered with; H1:

The die is a fair die

Roll count:

Rolled   Count
1   1
2   5
3   4
4   6
5   9
6   75

Test Statistic:

Give the P-value:

Which is the correct result:

Reject the Null Hypothesis
Do not Reject the Null Hypothesis

Which would be the appropriate conclusion?

There is enough evidence to suggest that the die has been tampered with.
There is not enough evidence to suggest that the die has been tampered with.

The Ocean City water park is considering the purchase of a new log flume ride. The cost to

purchase the equipment is $5,000,000, and it will cost an additional $380,000 to have it installed. The equipment has an expected life of six years, and it will be depreciated using a MACRS 7-year class life. Management expects to run about 150 rides per day, with each ride averaging 25 riders. The season will last for 120 days per year. In the first year the ticket price per rider is expected to be $5.25, and it will be increased by 4% per year. The variable cost per rider will be $1.4, and total fixed costs will be $425,000 per year. After six years, the ride will be dismatled at a cost of $215,000 and the parts will be sold for $450,000. The cost of capital is 8.5%, and its marginal tax rate is 35%.

a. Calculate the initial outlay, annual after-tax cash flow for each year, and the terminal cash flow.

b. Calculate the NPV, IRR, and MIRR of the new equipment. Is the project acceptable?

c. Create a Data Table that shows the NPV, IRR, and MIRR for MACRS classes of 3, 5, 7, 10, 15 and 20 years. What do you conclude about the speed of depreciation and the profitability of an investment?

d. Using Goal Seek, calculate the minimum ticket price that must be charged in the first year in order to make the project acceptable.

Thunder Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $147,150 and have an estimated useful life of 6 years. It can be sold for $68,000 at the end of that time. (Amusement parks need to rotate exhibits to keep people interested.) It is expected to increase net annual cash flows by $24,000. The company’s borrowing rate is 8%. Its cost of capital is 10%. Click here to view the factor table. Calculate the net present value of this project to the company and determine whether the project is acceptable. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round present value answer to 0 decimal places, e.g. 125.)

The project:

Suzy’s Cool Treatz is a snow cone stand near the local park. To plan for the future, the owner wants to determine her cost behavior patterns. She has the following information available about her operating costs and the number of snow cones served.

Suzy uses the high-low method to determine her operating cost equation. What are her estimated costs at 4628 snow cones? When calculating the variable cost per unit, round your answer to two decimal places before completing your calculations. Do not use dollar signs, commas or decimals in your answer. Input your answer to the nearest whole number.

Adjusted WACC. ​ Hollydale's is a clothing store in East Park. It paid an annual dividend of ​$1.20 last year to its shareholders and plans to increase the dividend annually at 3.0​%. It has 590 comma 000 shares outstanding. The shares currently sell for ​$17.37 per share. ​ Hollydale's has 11 comma 000 semiannual bonds outstanding with a coupon rate of 6​%, a maturity of 24 ​years, and a par value of ​$1 comma 000. The bonds are currently selling for ​$638.46 per bond. What is the adjusted WACC for​ Hollydale's if the corporate tax rate is 40​%?

A new roller coaster at an amusement park requires individuals to be at least​ 4' 8"

​(56 inches) tall to ride. It is estimated that the heights of​ 10-year-old boys are normally distributed with

mu equals μ=55.0 inches and sigma equals σ=4 inches.

a. What proportion of​ 10-year-old boys is tall enough to ride the​ coaster?

b. A smaller coaster has a height requirement of

50 inches to ride. What proportion of​ 10-year-old boys is tall enough to ride this​ coaster?

c. What proportion of​ 10-year-old boys is tall enough to ride the coaster in part b but not tall enough to ride the coaster in part​ a?

A pair of bumper cars in an amusement park ride collide elastically as one approaches the other directly from the rear, as seen in part (a) of the figure below. ((a) before collision, (b) after collision) One has a mass of m1 = 462 kg and the other m2 = 546 kg, owing to differences in passenger mass. If the lighter one approaches at v1 = 4.48 m/s and the other is moving at v2 = 3.63 m/s, calculate the velocity of the lighter car after the collision.

Calculate the velocity of the heavier car after the collision.

Calculate the change in momentum of the lighter car.

Calculate the change in momentum of the heavier car.

(a) Have you ever visited an amusement park and taken a ride on a parachute drop ride? These types of rides take the passengers to a great height, and then drop them in free fall. Before they hit the ground, the ride is slowed using a Lenz’s law mechanism thus avoiding certain death. For this discussion, first locate a photo of one of these rides (either one you’ve personally experienced or one you might like to try someday), and in your initial post, upload the photo and respond to the following:

• Explain how Lenz’s law applies to this situation.
• Why is the Lenz’s law mechanism ideal for such a use?
• What other mechanisms can be used to slow the descent? Compare and contrast these options with the Lenz’s law mechanism.

(b) As you have learned, an electromagnet is a magnet that is produced by electric current. Think about how electromagnets are used and what you have seen or heard of them being used for. In your initial discussion post, respond to the following:

• Which of the principles or laws discussed in this module explain how an electromagnet works?
• Describe in detail two modern applications of electromagnets. Do these electromagnets draw a large amount of current or a little? How do you know? What supplies that current?
• Why do you think electromagnets are used in these different ways?
• What is the advantage of using an electromagnet rather than a permanent magnet?

a) A child slides down a water slide at an amusement park from an initial height h. The slide can be considered frictionless because of the water flowing down it. Can the equation for conservation of mechanical energy be used on the child?

YesNo     

(b) Is the mass of the child a factor in determining his speed at the bottom of the slide?

YesNo     

(c) The child drops straight down rather than following the curved ramp of the slide. In which case will he be traveling faster at ground level?

following the curved rampdropping straight down     same speed in either case

(d) If friction is present, how would the conservation-of-energy equation be modified?


(e) Find the maximum speed of the child when the slide is frictionless if the initial height of the slide is 13.5 m. (Assume the child is initially at rest.)
m/s

Water Planet is considering purchasing a water park in Miami, Florida​, for $ 2,100,000. The new facility will generate annual net cash inflows of $ 535,000 for eight years. Engineers estimate that the facility will remain useful for eight years and have no residual value. The company uses​ straight-line depreciation. Its owners want payback in less than five years and an ARR of 10​% or more. Management uses a 12% hurdle rate on investments of this nature.

.

Requirement 1. Compute the payback​ period, the​ ARR, the​ NPV, and the approximate IRR of this investment.​ (If you use the tables to compute the​ IRR, answer with the closest interest rate shown in the​ tables.) ​(Round the payback period to one decimal​ place.)

​(Round the percentage to the nearest tenth​ percent.)

​(Round your answer to the nearest whole​ dollar.)

The IRR​ (internal rate of​ return) is between

.

Requirement 2. Recommend whether the company should invest in this project.