Two investments with varying cash flows (in thousands of dollars) are available, as shown in Table. At time 0, $10,000 is available for investment, and at time 1, $7,000 is available.

Investment 0 1 2 3

A -6 -5 7 9

B -8 -3 9 7

Assuming that r = 0.40 (4%), set up an LP whose solution maximizes the NPV obtained from these investments. Graphically find the optimal solution to the LP.

A sample of 81 60-watt lightbulbs produced by Dynamics, Inc. obtained a mean lifetime of 1347 hours with a variance of 729 hours. A sample of 50 60-watt lightbulbs produced by National Electronics Corporation obtained a mean lifetime of 1282 hours with a variance of 800 hours.

a) Calculate a 99% confidence interval for μ1- μ2, the difference between the true mean lifetimes of the two type of lightbulbs. Answer to one decimal place, the lower bound and the upper bound of the interval should be correct to one decimal place.

b) Test H₀: μ₁- μ₂ = 50 versus H₁ : μ₁- μ₂ > 50 by setting α = .01 . We can reject the Null Hypothesis.

True or False?

A sample of 81 60-watt lightbulbs produced by Dynamics, Inc. obtained a mean lifetime of 1347 hours with a variance of 729 hours. A sample of 50 60-watt lightbulbs produced by National Electronics Corporation obtained a mean lifetime of 1282 hours with a variance of 800 hours.

a) Calculate a 99% confidence interval for μ1- μ2, the difference between the true mean lifetimes of the two type of lightbulbs. Answer to one decimal place, the lower bound and the upper bound of the interval should be correct to one decimal place.

b) Test H₀: μ₁- μ₂ = 50 versus H₁ : μ₁- μ₂ > 50 by setting α = .01 . We can reject the Null Hypothesis.

True or False?

JAVA

StudentId: Consist of the first two characters of the student's first name, student's birth year, and the last two characters of the last name. For instance, if the student full name is John Doe and birthyear is 1995, then the id will be Jo1995oe. Birthday is using GregorianCalendar.

String firstname

String lastname

GregorianCalendar birthday

1. Nike has a project that will produce cash flows $200 next year if the economy is strong and $50 if the economy is weak. Suppose the corporate tax rate is 0. The economy will be strong with probability 50%. Nike issued both debt and equity to raise funds out of this project as much as possible. Specifically, Nike raised $60 by issuing debt with a face value $80. So, the creditors will receive $80 in total if the economy is strong but receive only $50 if the economy is bad because Nike defaults in this case. Nike also raised $50 by issuing equity as much as possible. The market risk premium is 7% and the risk-free rate is 5%. The entrepreneur of Nike has no equity shares in her firm. Now, suppose there is another shoes company, New Balance. This firm also has a project that will produce $200 next year if the economy is strong and $50 if the economy is weak. But the entrepreneur of New Balance wants to raise only $40 by issuing debt to avoid the chance of default. Assuming issued at risk-free rate and face value of $42 on the debt. She also plans to issue equity to raise funds as much as possible out of her project.

1. Suppose investor A is a single investor of Nike, who holds all the bonds and equities issued by Nike. Also, suppose investor B is a single investor of New Balance. The payoffs to these two investors will be the same?
2. If yes, how much can New Balance raise from equity holders? Does the total amount of funds that can be raised depend on the default risk of a firm?
3. What’s the expected return of equity for New Balance? What’s the equity beta?
4. What’s the cost of capital of New Balance?

Transfer the journal entries to T-accounts for the transactions below, compute closing amounts for the T-accounts, and construct a final balance sheet to answer the question.

Journal amounts in thousands

What is the final amount in Total Liabilities?

Please specify your answer in the same units as the balance sheet.

Transfer the journal entries to T-accounts for the transactions below, compute closing amounts for the T-accounts, and construct a final balance sheet to answer the question.

Journal amounts in thousands

What is the final amount in Total Assets?

Please specify your answer in the same units as the balance sheet.

1. Answer the following questions regarding a standard 52-deck, which has 13 of each suite )heart, spades, clubs, and diamonds) and 3 face cards in each suit.

a. What is the probability that you will randomly receive an ace of diamonds or a queen of clubs?

b. If you were to draw a card, replace it, and shuffle, then what would be the probability of drawing the same card again?

c. Face cards are the King, Queen, or Jack cards for each suit. What is the probability of drawing a face card or a diamond card?

2. Dice have 6 sides with 1 through 6 dots on each side. There are 36 possible outcomes with the rolling of two dice. What is the probability that you could roll the sum of 7 with the pair of dice?

3. For a normal distribution with a mean of μ = 50 and σ = 10, find each probability value requested. Show your work in order to receive credit.

a. p(x>65)

b. p(x<47)

c. p(40 < X < 60)