Your firm is evaluating a new $725,000 investment opportunity with a 16% required return. You expect to sell 3,500 units per year at $50 net cash flow each for the next 8 years. Suppose that after one year, you will know more about demand and be able to revise your estimate of future unit sales based on sales you observe for year 1. Further, suppose that the project can be dismantled and sold to net $650,000 at that time.
a. What is the minimum level of unit sales for year 1 below which would it make sense to abandon the project?
b. If the original expectation of 3,500 unit sales is the average of two equally likely outcomes (3,000 units or 4,000 units), what is the value of the project, including the option to abandon at the end of the first year?
In: Finance
A new grain combine with a 20 year life can remove seven pounds of rocks from its harvest per hour. Any rocks left in the its output hopper will cause $35,000 damage in subsequent processes. Several investments are available to increase the rock-removal capacity, as listed in the table below. If the effective annual rate of return is 8%, what should be done? Note that the $35,000 damage is on an annual basis. For example, if nothing is done (1st option), then there is a 20% chance of incurring $35,000 of damage each year.
|
Rock Removal Rate (RRR) |
Probability of exceeding RRR |
Required Investment |
|
7 lb/hr |
0.20 |
$0 |
|
8 lb/hr |
0.10 |
$12,000 |
|
9 lb/hr |
0.05 |
$18,000 |
|
10 lb/hr |
0.025 |
$25,000 |
In: Finance
This part of the assignment is purely conceptual with no computations required. Explain the following with references to the required readings:
What is likely to happen to interest rates if the rate of inflation suddenly increases?
Suppose there are two bonds each with coupon payments of $50. The first bond pays $1,000 in five years, and the other one pays $1,000 in ten years. If interest rates increased, would the value of the bonds increase or decrease? Which of the two bonds would have their value change more after the increase in interest rates? Explain your reasoning.
In: Finance
Consider the following hypothesis test.
| H0: μ = 15 |
| Ha: μ ≠ 15 |
A sample of 50 provided a sample mean of 14.08. The population standard deviation is 3.
A. Find the value of the test statistic. (Round your answer to two decimal places.)
B. Find the p-value. (Round your answer to four decimal places.)
C. State the critical values for the rejection rule. (Round your answers to two decimal places. If the test is one-tailed, enter NONE for the unused tail.)
test statistic≤test statistic≥
In: Statistics and Probability
A rocket of M = 20 kg moves in a straight line upwards and
explodes 50 meters above the ground, separating into two fragments
that are launched horizontally. One of the fragments, with a mass
equal to two-thirds of the mass of the rocket, falls ten meters
from the launch point.
a) How far does the other fragment fall?
b) At what speed does the lightest fragment reach the ground?
c) If the explosion produces 300 J as heat, what total energy is
released in the explosion?
Air resistance is not considered.
In: Physics
Two identical conducting spheres, fixed in place, attract each other with an electrostatic force of -0.8803 N when separated by 50 cm, center-to-center. The spheres are then connected by a thin conducting wire. When the wire is removed, the spheres repel each other with an electrostatic force of 0.0921 N. What were the initial charges on the spheres? Since one is negative and you cannot tell which is positive or negative, there are two solutions. Take the absolute value of the charges and enter the smaller value here. Enter the larger value here.
In: Physics
Two identical conducting spheres, fixed in place, attract each other with an electrostatic force of -0.6825 N when separated by 50 cm, center-to-center. The spheres are then connected by a thin conducting wire. When the wire is removed, the spheres repel each other with an electrostatic force of 0.1986 N. What were the initial charges on the spheres? Since one is negative and you cannot tell which is positive or negative, there are two solutions. Take the absolute value of the charges and enter the smaller value AND larger value.
In: Physics
Two identical conducting spheres, fixed in place, attract each other with an electrostatic force of -0.2532 N when separated by 50 cm, center-to-center. The spheres are then connected by a thin conducting wire. When the wire is removed, the spheres repel each other with an electrostatic force of 0.2525 N. What were the initial charges on the spheres? Since one is negative and you cannot tell which is positive or negative, there are two solutions. Take the absolute value of the charges and enter the smaller value here. Enter the larger value here.
In: Physics
Explain the different hypothesis tests one could use when assessing the distribution of a categorical variable (e.g. smoking status) with only two levels (e.g. levels: smoker and non-smoker) vs. more than two levels (e.g. levels: heavy smoker, moderate smoker, occasional smoker, non-smoker).
Be precise. Use the language of the textbook to identify the appropriate test and how you would conduct it. NOTE: Minimum of 150 words for primary post and 50 words for each of three replies to your peers.
In: Math
In first year programming C language, using math.h, traditional stdio.h, bool.h, and mainly functions - taking approx. 85 lines of code:
We often need to shuffle data in many applications. Consider a case of a game that plays cards for example or a system that does a draw for lottery. The purpose of this lab is to write functions that will help us shuffle elements of an array.
Create a function that takes an array of integers and its size as parameters and populates the array with the values: 0, 1, 2, ..., size-1, where size is the size of the array.
Create a function that takes an array of integers and two indices (integers) and swaps the two elements. For example if I pass the array and 3 and 7 then the array will swap the element at index 3 with the element at index 7.
Create a function that takes an array of integers and its size as parameters and shuffles the array. You can accomplish this by going through the elements and exchanging each one with a randomly selected element (hint: use the method you created in step 2.
Create a function that takes an array of integers, its size and a value as parameters and returns the index at which the value is stored. If the array doesn't contain the value then the function returns -1. For example if the array is 1 4 6 2 10 11 12 and the value is 11 then the function returns 5 because 11 is stored at index 5. If the value is 20 then the function returns -1 because 20 is not in the array.
Create a function that takes an array of integers and its size as parameters and prints the contents of the array.
In main write code to test your function. Namely, creates an array of 15 integers, populate it, print it, shuffle it, print it again and print the index of an element in the array and the index of an element not in array .
Here is sample output:
Elements before shuffle: 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Elements after shuffle: 9 8 10 6 5 12 14 2 7 3 4 1 13 11 0 What value are you searching for? 7 Element 7 is stored at index 8 What value are you searching for? 30 Element 30 is stored at index -1
In: Computer Science