What are the long term cost benefits for using an LEED building?

Cafeteria is planning to install vending machines with a cost of $300,000.

 It is estimated that these vending machines will generate annual sales of 20,000 cups with a price
of $10 per cup.
 Cash variable costs are $4 per cup while cash fixed costs are expected to be $50,000 per year.
 The vending machine’s estimated economic life would be 5 years with a salvage value of $50,000
and depreciated using the straight-line method.
 BANE is subject to a 35% income tax rate.

REQUIREMENTS:
a. Determine the payback period;
b. Determine the accounting rate of return based on original investment;
c. Determine the accounting rate of return based on the average investment

A hypothesis test was done on the mean cost of textbooks at UVA in a given semester. the null and alternative hypotheses were H₀: μ=$220 and H₁: μ < 220. A sample of 49 UVA students showed a mean of $212, and a P-value of 0.092 was calculated. The P-value is:

a) The probability of making the wrong decision

b) The probability that the true value is $212

C) The probability that if the true value is $220 we will have a sample mean of $212 or less

d) The probability that if the true value is $220 we will have a sample mean that is equal to $212

e) The probability that the true value is $220

An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume.

In the Microsoft Excel Online file below you will find a sample of production volumes and total cost data for a manufacturing operation. Conduct a regression analysis to explore the relationship between total cost and production volume and then answer the questions that follow.

1. Compute b₁ and b₀ (to 1 decimal).

   b₁

   b₀

   Complete the estimated regression equation (to 1 decimal).

   =  + x

2. According to this model, what is the change in cost (in dollars) for every unit produced (to 1 decimal)?

3. Compute the coefficient of determination (to 3 decimals). Note: report r² between 0 and 1.

   r² =

   What percentage of the variation in total cost can be explained by the production volume (to 1 decimal)?

   %

4. The company's production schedule shows 500 units must be produced next month. What is the estimated total cost for this operation (to the nearest whole number)?

   $

1. There are identical firms with cost function ?(?) = ? 2 + 100. The market demand is given by the following inverse demand function ? = −0.02? + 220. The industry is a constant cost industry. This is a competitive market where each firm takes the price as given, with $5 per unit tax levied on the producers.

a) Calculate the firm’s MC, AC, AVC and supply ?(?). Graph the cost curves and the supply on a graph.

b) What is the long-run market supply curve? Graph the long-run market supply with the market demand on a graph. Explain how you come to your conclusion.

c) How many firms operate in the long-run? Explain why you will not see a more or smaller number of firms in the long run.

d) What is the short-run market supply if there are 50 firms? What is the profit in the short-run with 50 firms in the market? What is the consumer surplus, producer surplus, and the total welfare in the short run with 50 firms?

g) What is the consumer surplus, producer surplus, and the total welfare in the long-run?

One contributor to the cost of college education is the purchase of textbooks. Administrators at a private college are interested in estimating the average amount students spend on textbooks during the first four years at the college. A random sample of 200 students was taken showing a sample mean of X ̅ = $5,230. Suppose that past studies have indicated that the population standard deviation for the amount students spend on textbooks at this college is σ = $500.

a.Develop and interpret 90% confidence interval estimate of the population mean.

b.Develop and interpret 95% confidence interval estimate of the population mean.

c.Discuss what happens to the width of the confidence interval (margin of error) as the confidence level is increased?

People in the aerospace industry believe the cost of a space project is a function of the weight of the major object being sent into space. You will use the following data to develop a regression model to predict the cost of a space project by the weight of the space object. Object Weight (tons) 1. 1.897, 2. 3.019, 3. 0.453 , 4. 0.988, 5. 1.058, 6. 2.100, 7. 2.387 total 11.902

Project Cost ($millions) 1. 53.6, 2. 184.9 ,3. 6.4, 4. 23.5, 5. 33.4, 6. 110.4, 7. 104.6, Totals: 516.8

a. Complete all of the blank entries in the partial Excel output below.

Regression Statistics

Multiple R

R Square

Standard Error

Observations.

ANOVA SS DF MS F

REGRESSION

RESIDUAL 446.4700921   

TOTAL 23744.45429

COEFFCIENTS STANDARD ERROR T STAT

INTERCEPTS -39.00709075 18.1114242

WEIGHTS(TONS) 9.560469477 6.941370994

b.Calculate the least squares regression equation for predicting the cost of a space project as a function of the weight of the major object being sent into space.

c. Interpret the practical meaning of the slope of the least squares regression line (i.e., in the context of the problem, in plain English).

d. Identify the independent and dependent variables in this regression analysis.

e. Using a significance level of ? = .05, is there sufficient evidence to conclude that the weight of the major object being sent into space is useful in predicting the cost of a space project? Do a complete and appropriate hypothesis test.

f. What proportion of the total variability in the cost of a space project can be explained by knowing the weight of the major object being sent into space?

g. Calculate the coefficient of correlation between the independent and dependent variables. Comment on what the magnitude and direction of this correlation coefficient says about the linear relationship between the independent and dependent variable.

h. Construct an appropriate interval estimate of the mean cost of all space projects when the weight of the major object being sent into space is 1.5 tons, with 95% confidence. Interpret the practical meaning of this interval estimate, in plain English.

i. Construct an appropriate interval estimate of the cost of a single space project when the weight of the object being sent into space is 1.5 tons, with 95% confidence. Interpret the practical meaning of this interval estimate, in plain English.

j. Construct a 95% confidence interval estimate of the true population slope for this least squares regression line. Interpret the practical meaning of your interval estimate, in plain English.

k. Calculate and report the estimated variance of the random errors, ?, for this regression analysis.

l. Calculate and report the estimated standard deviation of the random errors, ?, for this regression analysis. m. Calculate and report the residual for the 2nd observation in the data set

Which of the following is FALSE?
Select one:
a. The cost of preferred stock is the ratio of the preferred stock dividend to a firm's net proceeds from the sale of the preferred stock.
b. The cost of new common stock is normally greater than any other long-term financing cost.
c. The cost of preferred stock is the ratio of the preferred stock dividend to a firm's total earnings.
d. The cost of preferred stock is typically higher than the cost of long-term debt (bonds) because the cost of long-term debt (interest) is tax deductible.

Which of the following is FALSE?
Select one:
a. A sunk cost is a cash flow that could be realized from the best alternative use of an owned asset.
b. Incremental cash flows represent the additional cash flows expected as a direct result of the proposed project.
c. Sunk costs are cash outlays that have already been made and therefore have no effect on the cash flows relevant to the current decision.
d. The three major cash flow components include the initial investment, operating cash flows, and terminal ca

Please Solve As soon as
Thank's
Abdul-Rahim Taysir