In the Table below is information about two options that face the Alpha & Omega Company as it seeks to expand its operations. Note that all cash flows are at the end of the year except for the initial costs.
|
Option 1 |
Option 2 |
|
|
Initial cost |
$680,000 |
$720,000 |
|
Usage life |
5 years |
6 years |
|
Salvage value at end of useful life |
$20,000 |
$30,000 |
|
Cash flows (excluding salvage value): |
||
|
Year 1 |
$140,000 |
$ 80,000 |
|
Year 2 |
$140,000 |
$180,000 |
|
Year 3 |
$140,000 |
$280,000 |
|
Year 4 |
$140,000 |
$380,000 |
|
Year 5 |
$140,000 |
$260,000 |
|
Year 6 |
$ - |
$150,000 |
|
Depreciation method is straight line |
||
|
Tax rate is |
20% |
20% |
|
Company’s cost of capital |
12% |
12% |
Present value of $1.00
|
Rate per period |
||
|
Periods |
6% |
12% |
|
1 |
0.9434 |
0.8929 |
|
2 |
0.8900 |
0.7972 |
|
3 |
0.8396 |
0.7118 |
|
4 |
0.7921 |
0.6355 |
|
5 |
0.7473 |
0.5674 |
|
6 |
0.7050 |
0.5066 |
|
7 |
0.6651 |
0.4524 |
Present value of Ordinary Annuity of $1.00
|
Rate per period |
||
|
Periods |
6% |
12% |
|
1 |
0.9434 |
0.8929 |
|
2 |
1.8334 |
1.6900 |
|
3 |
2.6730 |
2.4018 |
|
4 |
3.4651 |
3.0373 |
|
5 |
4.2124 |
3.6048 |
|
6 |
4.9173 |
4.1114 |
|
7 |
5.5824 |
4.5638 |
1 Calculate the net present value for each option.
2 Calculate the payback period for each option
3. Based on the results in (a) and (b) what course of action would you recommend to the management of Alpha & Omega Company?
In: Accounting
The Student Government Association at Middle Carolina University wanted to demonstrate the relationship between the number of beers a student drinks and his or her blood alcohol content (BAC). A random sample of 18 students participated in a study in which each participating student was randomly assigned a number of 12-ounce cans of beer to drink. Thirty minutes after they consumed their assigned number of beers, a member of the local sheriff’s office measured their blood alcohol content. The sample information is reported below.
| Student | Beers | BAC | Student | Beers | BAC |
| 1 | 6 | 0.10 | 10 | 3 | 0.07 |
| 2 | 7 | 0.09 | 11 | 3 | 0.05 |
| 3 | 7 | 0.09 | 12 | 7 | 0.08 |
| 4 | 4 | 0.10 | 13 | 1 | 0.04 |
| 5 | 5 | 0.10 | 14 | 4 | 0.07 |
| 6 | 3 | 0.07 | 15 | 2 | 0.06 |
| 7 | 3 | 0.10 | 16 | 7 | 0.12 |
| 8 | 6 | 0.12 | 17 | 2 | 0.05 |
| 9 | 6 | 0.09 | 18 | 1 | 0.02 |
Click here for the Excel Data File
a-1. Choose a scatter diagram that best fits
the data.
A.
B.
C.
A
B
C
Fill in the blanks. (Round your answers to 3 decimal places.)
| x¯x¯ | |
| y¯y¯ | |
| Sx | |
| Sy | |
c-1. Determine the coefficient of correlation and coefficient of determination. (Round your answer to 3 decimal places.)
c-2. Compute the value of the test statistic. (Round your answer to 2 decimal places.)
In: Statistics and Probability
Write a C++ program that inputs three integers in the range [1..13] that represent a hand of three cards. Your program should output an English evaluation of the hand.
In the output, cards will be described as follows:
- 2–10 are described by the words for their numeric values: two, three, etc.
- 1 is called an ace, 11 is called a jack, 12 is called a queen, and 13 is called a king.
The evaluation of a hand is based on the first of the following cases that matches the cards:
- All three cards are equal to each other.
Sample output for 4 4 4: You have three fours.
- The three cards form a straight (three successive values).
Sample output for 6 8 7: You have an eight-high straight.
- Two cards (a pair) are equal.
Sample output for 6 3 6: You have a pair of sixes.
- Whatever is the highest card.
Sample output for 11 1 8: You have a jack.
Recommend sorting the card values before trying to evaluate the hand –that makes it much easier. Also, work on one thing at a time: first determine what kind of hand (3 of kind, 2 of kind, straight,...) and then determine what is the “significant” card for that hand (it becomes very messy and exhausting if you try to do both at the same time!). Check for card values being equal to each other (card1 == card2), not specific values (card1 == 1 && card2 == 1 || card1 == 2 && card 2 == 2 || ...). If you check each value, your program will be hundreds of lines long!
In: Computer Science
In: Computer Science
Consider the following two mutually exclusive projects
| Year | Cash flow (a) | Cash Flow (b) |
| 0 | -350,000 | -50,000 |
| 1 | 45,000 | 24,000 |
| 2 | 65,000 | 22,000 |
| 2 | 65,000 | 19,500 |
| 4 | 440,000 | 14,600 |
In excel create an NPV profile graph for the 2 projects
In: Finance
For the reaction
2 HCl + Na2CO3 ----> 2 NaCl + H2O + CO2
8.0 moles of CO2 is collected at STP. What is the volume of CO2?
1.) 2.80 L
2.) 179 L
3.) 57.6 L
4.) 0.0250 L
5.) 22.4 L
6.) 0.357 L
In: Chemistry
STAT 150 Homework
23. Random Variable X takes integer values and has the Moment Generating Function: Mx(t)= 4/(2-e^t) - 6/(3-e^t).
1) What is the variance of X.
2) Find the probability P(X ≤ 2).
In: Statistics and Probability
USING BISECTION METHOD, FIND THE ROOT OF 0.5e^x - 5x + 2 = 0 ON THE INTERVAL [ 0 , 1 ] UP TO 3 DECIMAL PLACES.
USE NEWTON'S METHOD TO APPROXIMATE THE ROOT OF f(x)=x^2-5 IN THE INTERVAL [ 2 , 3 ] UP TO 4 DECIMAL PLACES.
In: Advanced Math
Identify the charge on the transition metal center and the number of valence d electrons it has.
1. [Cu(en)2(H2O)2]I2
2. [Co(NH3)5(NO2)]Cl2
3. [Co(en)2Cl2]Cl-
4. Mo(bipy)(pph3)(CO)3
In: Chemistry
The students in one college have the following rating system for
their professors:excellent, good, fair, and bad. In a recent poll
of the students, it was found that they believe that 20% of the
professors are excellent, 50% are good, 20% are fair, and 10% are
bad. Assume that 12 professors are randomly selected from the
college.
a. What is the probability that 6 are excellent, 4 are good, 1 is
fair, and 1 is bad?
b. What is the probability that 6 are excellent, 4 are good, and 2
are fair?
c. What is the probability that 6 are excellent and 6 are
good?
d. What is the probability that 4 are excellent and 3 are
good?
e. What is the probability that 4 are bad?
f. What is the probability that none is bad?
In: Statistics and Probability