Questions
We are creating a new card game with a new deck. Unlike the normal deck that...

We are creating a new card game with a new deck. Unlike the normal deck that has 13 ranks (Ace through King) and 4 Suits (hearts, diamonds, spades, and clubs), our deck will be made up of the following.

Each card will have:
i) One rank from 1 to 15.
ii) One of 5 different suits.

Hence, there are 75 cards in the deck with 15 ranks for each of the 5 different suits, and none of the cards will be face cards! So, a card rank 11 would just have an 11 on it. Hence, there is no discussion of "royal" anything since there won't be any cards that are "royalty" like King or Queen, and no face cards!

The game is played by dealing each player 5 cards from the deck. Our goal is to determine which hands would beat other hands using probability. Obviously the hands that are harder to get (i.e. are more rare) should beat hands that are easier to get.

g) How many different ways are there to get a full house (i.e. 3 of a kind and a pair, but not all 5 cards the same rank)?

What is the probability of being dealt a full house?
Round your answer to 7 decimal places.

h) How many different ways are there to get a straight flush (cards go in consecutive order like 4, 5, 6, 7, 8 and all have the same suit. Also, we are assuming there is no wrapping, so you cannot have the ranks be 13, 14, 15, 1, 2)?

What is the probability of being dealt a straight flush?
Round your answer to 7 decimal places.

In: Statistics and Probability

We are creating a new card game with a new deck. Unlike the normal deck that...

We are creating a new card game with a new deck. Unlike the normal deck that has 13 ranks (Ace through King) and 4 Suits (hearts, diamonds, spades, and clubs), our deck will be made up of the following.

Each card will have:
i) One rank from 1 to 15.
ii) One of 5 different suits.

Hence, there are 75 cards in the deck with 15 ranks for each of the 5 different suits, and none of the cards will be face cards! So, a card rank 11 would just have an 11 on it. Hence, there is no discussion of "royal" anything since there won't be any cards that are "royalty" like King or Queen, and no face cards!

The game is played by dealing each player 5 cards from the deck. Our goal is to determine which hands would beat other hands using probability. Obviously the hands that are harder to get (i.e. are more rare) should beat hands that are easier to get.
a)

b)How many different ways are there to get exactly 1 pair (i.e. 2 cards with the same rank)?

What is the probability of being dealt exactly 1 pair?
Round your answer to 7 decimal places.

c) How many different ways are there to get exactly 2 pair (i.e. 2 different sets of 2 cards with the same rank)?

What is the probability of being dealt exactly 2 pair?
Round your answer to 7 decimal places.

In: Statistics and Probability

Your company is deciding whether to invest in a new machine. The new machine will increase...

Your company is deciding whether to invest in a new machine. The new machine will increase cash flow by $311,000 per year. You believe the technology used in the machine has a 10-year life; in other words, no matter when you purchase the machine, it will be obsolete 10 years from today. The machine is currently priced at $1,680,000. The cost of the machine will decline by $106,000 per year until it reaches $1,150,000, where it will remain.

  

If your required return is 13 percent, calculate the NPV today. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  

   NPV $   

   

If your required return is 13 percent, calculate the NPV if you wait to purchase the machine until the indicated year. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

  

                       NPV    
  Year 1 $   
  Year 2 $   
  Year 3 $   
  Year 4 $   
  Year 5 $   
  Year 6 $   

   

Should you purchase the machine?
Yes
No

  

If so, when should you purchase it?
Today
One year from now
Two years from now

In: Finance

A manufacturing company is evaluating two options for new equipment to introduce a new product to...

A manufacturing company is evaluating two options for new equipment to introduce a new product to its suite of goods. The details for each option are provided below:

Option 1 


$65,000 for equipment with useful life of 7 years and no salvage value. 


Maintenance costs are expected to be $2,700 per year and increase by 3% in Year 6 and remain at that rate. 


Materials in Year 1 are estimated to be $15,000 but remain constant at $10,000 per year for the remaining years. 


Labor is estimated to start at $70,000 in Year 1, increasing by 3% each year after. 


Revenues are estimated to be: 

Year 1Year 2Year 3Year 4Year 5Year 6Year 7-   75,000   100,000   125,000   150,000   150,000   150,000

Option 2 

$85,000 for equipment with useful life of 7 years and a $13,000 salvage value 


Maintenance costs are expected to be $3,500 per year and increase by 3% in Year 6 and remain at that rate. 


Materials in Year 1 are estimated to be $20,000 but remain constant at $15,000 per year for the remaining years. 


Labor is estimated to start at $60,000 in Year 1, increasing by 3% each year after. 


Revenues are estimated to be:

Year 1Year 2Year 3Year 4Year 5Year 6Year 7-   80,000   95,000   130,000   140,000   150,000   160,000
The company’s required rate of return is 8%.
Management has turned to its finance and accounting department to perform analyses and make a recommendation on which option to choose. They have requested that the four main capital budgeting calculations be done: NPV, IRR, Payback Period, and ARR for each option.
For this assignment, compute all required amounts and explain how the computations were performed. Evaluate the results for each option and explain what the results mean. Based on your analysis, recommend which option the company should pursue.

In: Accounting

c programing language When a new program is executed, a new process is created with the...

c programing language

When a new program is executed, a new process is created with the next available process ID. However, there are a few special processes that always have the same process ID, which are usually given the ID value less than 5 these are called system processes. Can you identify which of the two system processes have the process ID of 0 and 1 respectively?

In: Computer Science

The Cost of Capital: Cost of New Common Stock If a firm plans to issue new...

The Cost of Capital: Cost of New Common Stock

If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. There are two approaches to use to account for flotation costs. The first approach is to add the sum of flotation costs for the debt, preferred, and common stock and add them to the initial investment cost. Because the investment cost is increased, the project's expected return is reduced so it may not meet the firm's hurdle rate for acceptance of the project. The second approach involves adjusting the cost of common equity as follows:



The difference between the flotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents the flotation cost adjustment.

Quantitative Problem: Barton Industries expects next year's annual dividend, D1, to be $2.50 and it expects dividends to grow at a constant rate g = 4.5%. The firm's current common stock price, P0, is $24.30. If it needs to issue new common stock, the firm will encounter a 5.5% flotation cost, F. Assume that the cost of equity calculated without the flotation adjustment is 12% and the cost of old common equity is 11.5%. What is the flotation cost adjustment that must be added to its cost of retained earnings? Round your answer to 2 decimal places. Do not round intermediate calculations.
%

What is the cost of new common equity considering the estimate made from the three estimation methodologies? Round your answer to 2 decimal places. Do not round intermediate calculations.
%

In: Finance

ABC is looking at purchasing a new machine. The new machine installed cost is $60,000 and...

ABC is looking at purchasing a new machine. The new machine installed cost is $60,000 and requires minimal increase in NWC (net working capital). It will be sold at the end of year 3 for an anticipated $5,000. Use MACRS 3 yr. (Remember to add the terminal cash flow in when calculating year 3 OCF) Anticipated cash savings prior to depreciation: Year 1$20,000, Year 2 $30,000, Year 3 $20,000 Calculate the operating cash flows for each year. Tax Rate is 40%

In: Finance

Firm XYZ is considering a project to built a new facility to install a new production...

Firm XYZ is considering a project to built a new facility to install a new production line. The firm requires a minimum return of 10% in this project, due to the risks involved. The firm is a 34% tax bracket. Sales, revenues and costs details are given in the table below:

Cost of new plant and equipment

$9,700,000

Shipping and installations costs

$300,000

Unit Sales forecasted

                                             Year 1 50,000

          Year 2 100,000

          Year 3 100,000

        Year 4 70,000

        Year 5 50,000

Sales price per unit sold

$145

Variable costs per unit produced

$80

Annual fixed costs

$500,000

Net Working Capital requirements

An initial $100,000 will be needed to start production. After that, net working capital requirements until year 5 will be equal to 5% of the total sales for the year. No NWC will be recuperated at the end of year 5

Depreciation

Using the straight-line method, the depreciation expense is $2,000,000 per year during the five years of the project life.

Tasks:

Estimate the CCFA for the next 5 years of operation

Using the NPV and IRR decision methods, decide if the firm should take the project.

In: Accounting

11. Print the length of the new list out to the screen. Ensure the new list...

11. Print the length of the new list out to the screen. Ensure the new list has a length of 25. 12. Append the integer value 42 to the new list. Print the new list to the screen.   13. Permanently sort the new list. Print the new list to the screen. 14. Remove the integer value 42 from the new list. Print the new list to the screen. 15. Implement a for loop to iterate through the new list. For each list value in the for loop, print the value to the screen after dividing the value by 10 and adding 1. Don’t permanently change the list item value in this process. Note: The math is, as an example, 200/10 + 1 = 21. 16. Print the new list out to the screen one more time to demonstrate the list values did not change during the for loop execution. in python

In: Computer Science

The Cost of Capital: Cost of New Common Stock If a firm plans to issue new...

The Cost of Capital: Cost of New Common Stock

If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. There are two approaches to use to account for flotation costs. The first approach is to add the sum of flotation costs for the debt, preferred, and common stock and add them to the initial investment cost. Because the investment cost is increased, the project's expected return is reduced so it may not meet the firm's hurdle rate for acceptance of the project. The second approach involves adjusting the cost of common equity as follows:



The difference between the flotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents the flotation cost adjustment.

Quantitative Problem: Barton Industries expects next year's annual dividend, D1, to be $2.50 and it expects dividends to grow at a constant rate g = 4.8%. The firm's current common stock price, P0, is $23.00. If it needs to issue new common stock, the firm will encounter a 4.9% flotation cost, F. Assume that the cost of equity calculated without the flotation adjustment is 12% and the cost of old common equity is 11.5%. What is the flotation cost adjustment that must be added to its cost of retained earnings? Round your answer to 2 decimal places. Do not round intermediate calculations.
%

What is the cost of new common equity considering the estimate made from the three estimation methodologies? Round your answer to 2 decimal places. Do not round intermediate calculations.
%

In: Finance