A dynamometer test lab currently has 45 computers with 20 printers. The computers cost $3,500 each and the printers were $350 each when purchased 2 years ago. The market value of the computers is estimated at $750 each today and the printers $75 each today. It is expected that the current equipment will last another 4 years and have no salvage value at that time. Operating expenses are $350 for each computer and $150 for each printer per year.

A new networked system is being considered that would have 45 terminal with a cost of $2.500 each; 7 printers would be purchased at $1000 each. The life of the new system is 6 years with a salvage value of $500 for the terminals and $400 for the printers at the end of that time. Operating expenses for the networked system are $6,000 per year.

A) What are the sunk costs at this point? (5 points)

B) If the firm desires a 15% IRR, determine the best alternative. (20 points)

Show ALL work.

Compute, if possible, how much revenue would be needed to breakeven in terms of cash flow. Comment on the financial viability of the venture. Would you suggest any changes? If so, what are they? If you do, this becomes your ‘base’ model.

If an angel offered funding of $30,000 for 40% of your company, how would you view the angel’s offer?

Question 7 (7 points)

During June, Bravo Magazine sold for cash six advertising spaces for $400 each to be run in the July through December issues. On that date, Bravo properly recognized Unearned Revenue. The adjusting entry to record on July 31 includes:

Question 7 options:

Question 8 (7 points)

On January 7, Bravo purchased supplies on account for $1,000, and recorded this purchase to the Supplies account. At the end of January, Bravo had $600 of these supplies still on hand. The proper adjusting journal entry at January 31 would:

Question 8 options:

You may need to use the appropriate appendix table to answer this question.

According to Money magazine, Maryland had the highest median annual household income of any state in 2018 at $75,847. Assume that annual household income in Maryland follows a normal distribution with a median of $75,847 and standard deviation of $33,800.

(a)

What is the probability that a household in Maryland has an annual income of $90,000 or more? (Round your answer to four decimal places.)

(b)

What is the probability that a household in Maryland has an annual income of $50,000 or less? (Round your answer to four decimal places.)

(c)

What is the probability that a household in Maryland has an annual income between $40,000 and $70,000? (Round your answer to four decimal places.)

(d)

What is the annual income (in $) of a household in the ninety-first percentile of annual household income in Maryland? (Round your answer to the nearest cent.)

January of 1999, the German Auto Bild magazine randomly tested different tread patterns across all tire brands as their journalists toured from the UK to the Bulgarian coast. They discovered on one leg of the tour that out of 100 tires, or 12%, shortcomings were due to defective sidewall wire. On another leg they found 125 tires, 15% of the defects were due to poor vulcanization.

a) Find an appropriate 95% confidence interval. Explain the difference in outcomes. Let poor vulcanization represent sample #1.

b) Use your confidence interval to explain the difference in outcomes. 2

c) An expert at TUV  thought defects due to wire imperfections were more common than poor vulcanization issues. Reexamine the question in part “b” using a hypothesis test to determine if you support this German regulator’s expert opinion?

Vaughn Magazine sold 9,480 annual subscriptions on August 1, 2020, for $13 each. Prepare Vaughn’s August 1, 2020, journal entry and the December 31, 2020, annual adjusting entry, assuming the magazines are published and delivered monthly. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount

A magazine provided overall customer satisfaction scores for AT&T, Sprint, T-Mobile, and Verizon cell-phone services in major metropolitan areas throughout the United States. The rating for each service reflects the overall customer satisfaction considering a variety of factors such as cost, connectivity problems, dropped calls, static interference, and customer support. A satisfaction scale from 0 to 100 was used with  indicating 0 completely dissatisfied and 100 indicating completely satisfied. The ratings for the four cell-phone services in 20 metropolitan areas are as shown.

a. Consider T-Mobile first. What is the median rating (to 1 decimal)?

b. Develop a five-number summary for the T-Mobile service.

c. Are there outliers for T-Mobile? Explain.

All ratings are between     and   .

- Select your answer -Yes, the data contain outliersNo, the data do not contain outliersItem 9

d. Repeat parts (b) and (c) for the other three cell-phone services.

Are there outliers for AT&T? Explain.

Limits for AT&T(to 1 decimal)     and  

- Select your answer -Yes, the data contain outliersNo, the data do not contain outliersItem 27

Are there outliers for Sprint? Explain.

Limits for Sprint(to 2 decimals)     and  

- Select your answer -Yes, the data contain outliersNo, the data do not contain outliersItem 30

Are there outliers for Verizon? Explain.

Limits for Verizon(to 2 decimals)     and  

- Select your answer -Yes, the data contain outliersNo, the data do not contain outliersItem 33

e. Which of the following box plots accurately displays the data set?

- Select your answer -Box plot #1Box plot #2Box plot #3Box plot #4Item 34

Which service did the magazine recommend as being best in terms of overall customer satisfaction?

- Select your answer -AT&TSprintT-MobileVerizonItem 35

Discuss what a comparison of the box plots tells about the four services.

- Select your answer -AT&T’sSprint’sT-Mobile’sVerizon’sItem 36  lowest rating is better than the highest - Select your answer -AT&T and SprintAT&T and VerizonSprint and VerizonT-Mobile and VerizonItem 37  ratings and is better than of the - Select your answer -AT&TSprintT-MobileVerizonItem 38 ratings. - Select your answer -AT&TSprintT-MobileVerizonItem 39  shows the lowest customer satisfaction ratings among the four services.

1. Social Circle Publications Inc. is considering two new magazine products. The estimated net cash flows from each product are as follows:

Each product requires an investment of $125,000. A rate of 10% has been selected for the net present value analysis.

Required:

1a. Compute the cash payback period for each product.

1b. Compute the net present value. Use the present value of $1 table above. If required, round to the nearest dollar.

2.

First United Bank Inc. is evaluating three capital investment projects by using the net present value method. Relevant data related to the projects are summarized as follows:

Required:

2a. Assuming that the desired rate of return is 15%, prepare a net present value analysis for each project. Use the present value of $1 table above. If required, use the minus sign to indicate a negative net present value. If required, round to the nearest dollar.

2b. Determine a present value index for each project. If required, round your answers to two decimal places.

A magazine provided overall customer satisfaction scores for AT&T, Sprint, T-Mobile, and Verizon cell-phone services in major metropolitan areas throughout the United States. The rating for each service reflects the overall customer satisfaction considering a variety of factors such as cost, connectivity problems, dropped calls, static interference, and customer support. A satisfaction scale from 0 to 100 was used with 0 indicating completely dissatisfied and 100 indicating completely satisfied. The ratings for the four cell-phone services in 20 metropolitan areas are contained in the Excel Online file below. Construct a spreadsheet to answer the following questions.

a. Consider T-Mobile first. What is the median rating (to 1 decimal)?

b. Develop a five-number summary for the T-Mobile service.

c. Are there outliers for T-Mobile?

_________Yes, the data contain outliersNo, the data do not contain outliers

d. Repeat parts (b) and (c) for the other three cell-phone services.

Are there outliers for AT&T?

_________Yes, the data contain outliersNo, the data do not contain outliers

Are there outliers for Sprint?

_________Yes, the data contain outliersNo, the data do not contain outliers

Are there outliers for Verizon?

_________Yes, the data contain outliersNo, the data do not contain outliers

e. Which of the following box plots accurately displays the data set?

_________Box plot #1Box plot #2Box plot #3Box plot #4

Which service did the magazine recommend as being best in terms of overall customer satisfaction?

_________AT&TSprintT-MobileVerizon