Two methods of maintenance for indefinite service life are being evaluated:

Method 1. The first cost would be $60,000, and $25,000 would be required at five-year intervals forever.

Method 2. The first cost would be $150,000, and $180,000 would be required at 50-year intervals of forever.

At I i = 12%, which method is the better one?

One year​ ago, your company purchased a machine used in manufacturing for $ 90 comma 000. You have learned that a new machine is available that offers many advantages and that you can purchase it for $ 170 comma 000 today. The CCA rate applicable to both machines is 40 %​; neither machine will have any​ long-term salvage value. You expect that the new machine will produce earnings before​ interest, taxes,​ depreciation, and amortization​ (EBITDA) of $ 45 comma 000 per year for the next 10 years. The current machine is expected to produce EBITDA of $ 22 comma 000 per year. All other expenses of the two machines are identical. The market value today of the current machine is $ 50 comma 000. Your​ company's tax rate is 42 %​, and the opportunity cost of capital for this type of equipment is 11 %. Should your company replace its​ year-old machine?

The following table shows student’s test scores on the first two tests in an introductory biology class.

(a) Draw a scatter plot using one the following website(s): http://www.alcula.com/calculators/statistics/scatter-plot/ or https://www.meta-chart.com/scatter
(b) Estimate the correlation in words (positive, negative, or no correlation)
(c) Calculate the correlation coefficient, r.
(d) Determine whether r is statistically significant at the 0.01 level of significance.
(e) Determine whether r is statistically significant at the 0.05 level of significance.
(f) Calculate the coefficient of determination, r2.
(g) Interpret the meaning of r2 for the given set of data.
(h) Find the equation of the least-squares regression line, if appropriate.

1. Find the appropriate measure of center. Discuss why the chosen measure is most appropriate. Why did you decide against other possible measures of center? 2. Find the appropriate measure of variation. The measure of variation chosen here should match the measure of center chosen in Part 1. 3. Find the graph(s) needed to appropriately describe the data. These may be done by hand and inserted into the Word document. You can also use Excel or a Web Applet to create a Histogram of the chosen data. Graphs can be copied and pasting onto the template. 4. Define the random variable (X) so that your chosen data set represents values of X. 5. Is your chosen random variable discrete or continuous? Explain how you know. 6. Would the Normal or Binomial distribution be a good fit for the underlying sample distribution of X? If one of them is a good fit, state how you would approximate the distribution parameters (Use the mean and standard deviation of the data chosen) 7. If you selected column D, calculate the probability that a flight will depart early or on-time. If you selected column E, calculate the probability that a flight will arrive early or on time using the empirical definition of probability. 8. If you selected column D, calculate the probability that a flight will depart late. If you selected column E, calculate the probability that a flight will arrive late using the empirical definition of probability. 9. For those that selected column D, assume now that the random variable X = Departure Time is exactly normally distributed with mean m= -2.5 and standard deviation s= 23. Compute the probability of a flight arriving late based on this new information. For those that selected column E, assume now that the random variable X = Arrival Time is exactly normally distributed with mean m= -2.5 and standard deviation s= 23. Does this contradict your answer from Part 8? Data: 0 -3 0 -7 8 -1 3 11 -6 -5 -8 -4 -13 -13 -11 -14 -16 -14 -18 -18 -23 -23 2 1 -4 -6 7 -8 -8 -4 -4 -5 -13 -9 -12 -7 -12 1 4 -19 -13 -19 3 12 13 2 0 0 4 -7 8 9 -1 -10 -6 -12 -14 -13 9 -15 -13 -14 20 -16 11 -14 18 -19 -3 -4 0 -3 2 6 6 -6 1 11 -7 -10 -13 9 -13 -18 -17 -11 -20 -18 8 0 -20 -3 1 -1 -4 -6 -5 -8 -10 -9 -6 8 -9 -12 -15 -14 -9 -17 -13 -17 2 -18 -18 -16 1 -4 0 -5 7 -7 -7 -5 0 5 -6 -12 1 6 -10 -15 -18 -16 -17 0 -21 -18 5 1 3 -2 -1 -2 -3 4 3 -11 9 -11 -11 0 -11 17 -10 -11 0 -19 -18 0 8 -23 3 -3 -4 -6 0 2 -1 -9 -9 4 1 -9 -12 0 0 -11 -14 -19 -17 -13 23 8 21 3 4 -2 1 6 7 -9 -3 1 -9 -5 -11 -6 -6 -10 -13 -9 -17 -6 -20 1 -21 -22 -2 0 -4 -3 3 -5 -6 -3 -5 -8 -12 -10 -7 -16 1 -14 -14 -16 -7 13 -17 -16 7 0 1 1 4 1 -8 -5 -9 0 -4 8 -7 -14 7 -8 5 4 8 21 3 11 2 -23 0 4 3 2 0 -1 -7 5 3 8 12 -12 -15 -11 -7 17 -15 -13 -17 -21 4 -19 -24 3 0 4 0 -2 -8 -5 6 5 1 -12 -14 7 8 -16 -11 -17 -20 10 4 -14 -22 -22 -3 -4 2 -4 -2 0 6 -6 2 -9 -3 -10 -13 7 -10 -12 -13 -16 -20 1 -14 -21 -17 3 -1 -1 0 -2 -7 -4 0 11 3 -11 -12 -11 -8 -13 -16 -16 7 2 -21 3 9 0 3 0 -5 -3 -3 -3 -3 -4 9 0 -8 -10 12 5 -16 -16 -13 -13 3 -19 0 -20 2 -3 -2 3 5 -1 -8 -3 -7 -11 -7 -10 12 -12 -8 17 -9 -18 -17 -14 1 -13 -21 -22 -2 -3 3 -3 -2 -7 -5 -10 -8 -6 -13 11 -11 -16 -9 -13 -12 -13 -16 -10 -20 -19 -22 -1 -4 2 4 -3 -8 4 -3 -7 -11 -13 2 -13 -12 -15 3 -17 -10 3 0 -19 -20 -20 0 0 -5 -4 -3 -5 -1 -8 -7 -2 13 11 -10 -12 -15 -14 -17 -18 6 12 6 -19 -20 0 -1 -5 -1 4 6 3 8 0 -11 -8 -14 -13 -11 3 -7 -11 10 -19 -20 -21 0 3 0 -4 0 2 -6 -7 -6 -7 8 -12 -2 -13 -7 9 -15 -14 -14 -17

Problem 17-12 Determine pension expense; journal entries; two years [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8]

The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2018 and 2019 are presented below ($ in millions):

Information Provided by Pension Plan Actuary:

1. Projected benefit obligation as of December 31, 2017 = $3,950.
2. Prior service cost from plan amendment on January 2, 2018 = $850 (straight-line amortization for 10-year average remaining service period).
3. Service cost for 2018 = $690.
4. Service cost for 2019 = $740.
5. Discount rate used by actuary on projected benefit obligation for 2018 and 2019 = 10%.
6. Payments to retirees in 2018 = $550.
7. Payments to retirees in 2019 = $620.
8. No changes in actuarial assumptions or estimates.
9. Net gain—AOCI on January 1, 2018 = $465.
10. Net gains and losses are amortized for 10 years in 2018 and 2019.

Information Provided by Pension Fund Trustee:

1. Plan asset balance at fair value on January 1, 2018 = $2,800.
2. 2018 contributions = $710.
3. 2019 contributions = $760.
4. Expected long-term rate of return on plan assets = 12%.
5. 2018 actual return on plan assets = $260.
6. 2019 actual return on plan assets = $310.

Required:

1. Calculate pension expense for 2018 and 2019.
2. Prepare the journal entries for 2018 and 2019 to record pension expense.
3. Prepare the journal entries for 2018 and 2019 to record any gains and losses and new prior service cost.
4. Prepare the journal entries for 2018 and 2019 to record the cash contribution to plan assets and benefit payments to retirees.

Problem 17-12 Determine pension expense; journal entries; two years [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8]

The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2018 and 2019 are presented below ($ in millions):

Information Provided by Pension Plan Actuary:

Projected benefit obligation as of December 31, 2017 = $1,850.

Prior service cost from plan amendment on January 2, 2018 = $550 (straight-line amortization for 10-year average remaining service period).

Service cost for 2018 = $550.

Service cost for 2019 = $600.

Discount rate used by actuary on projected benefit obligation for 2018 and 2019 = 10%.

Payments to retirees in 2018 = $410.

Payments to retirees in 2019 = $480.

No changes in actuarial assumptions or estimates.

Net gain—AOCI on January 1, 2018 = $245.

Net gains and losses are amortized for 10 years in 2018 and 2019.

Information Provided by Pension Fund Trustee:

Plan asset balance at fair value on January 1, 2018 = $1,400.

2018 contributions = $570.

2019 contributions = $620.

Expected long-term rate of return on plan assets = 12%.

2018 actual return on plan assets = $120.

2019 actual return on plan assets = $170.

Required:

1. Calculate pension expense for 2018 and 2019.
2. Prepare the journal entries for 2018 and 2019 to record pension expense.
3. Prepare the journal entries for 2018 and 2019 to record any gains and losses and new prior service cost.
4. Prepare the journal entries for 2018 and 2019 to record the cash contribution to plan assets and benefit payments to retirees.

NOTE that significant marks will be lost if your answer does not include the NUMERICAL FORMULA.

Question 1 (25 marks/ Time Value of Money and WACC)

(a) You need to pay off a car loan within the next two years. The payment will be $4,000 every month. Today you have made a single deposit into a return-guaranteed investment account that will allow you to cope with all the monthly payments. This account earns an effective annual interest rate of 12.68250301%. The first payment will be made in one month.

1. (i) Calculate the corresponding monthly rate for the investment account.

2. (ii) “You need to have at least $96,000 at your account today in order to make all the payments on the car loan in the next two years.” True or false? Briefly explain without doing any time value of money related (i.e. PVA or FVA) calculations.

3. (iii) What is the amount of the single deposit made today?

4. (iv) If your mother is going to make the first year’s repayments for you (as a birthday gift) and thus you don’t need to withdraw the $4,000 every month from the investment account, how much more money will you have in your bank account two years from

now?

Data that can be classified according to colour are measured on:

Select one:

A. Ratio Scale

B. Interval scale

C. Ordinal scale

D. Nominal Scale

QUESTION 2

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A researcher wants to investigate whether there is a relationship between the number of years of college a person has completed and a place of residence. Three locations were classified for residence (Urban, suburban, rural) and three categories for the number of years (No college, four-year degree, advance degree). A sample of 70 people is selected and classified in the following contingency table.

The expected frequency for the cell suburban and a four-year degree is:

Select one:

A. 12.73

B. 11.53

C. 9.55

D. 8.73

QUESTION 3

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A company is hiring candidates for 4 key positions in the management of its new office. 5 candidates are from Malaysia and 3 are from United States. Assuming that every combination of Malaysian and American is equally likely to be selected, what is the probability that at least 1 American will be selected?

Select one:

A. 4/14

B. 1/14

C. 13/14

D. 5/14

QUESTION 4

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What is another name for ogive?

Select one:

A. Pareto chart

B. cumulative frequency graph

C. histogram

D. frequency distribution

QUESTION 5

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When data are first collected, they are called:

Select one:

A. Raw Data

B. Survey data

C. Processed Data

D. Historical Data

QUESTION 6

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A research group claims by taking a special vitamin, a weight lifter can increase his strength. After two weeks of training, supplemented with vitamin, they tested again. Test the effectiveness of the regiment at α = 0.05. Assume that the variable is normally distributed. The alternative hypothesis is :

Select one:

A. H1: µD ≠ 0

B. H1: µD < 0

C. H1: µD = 0

D. H1: µD > 0

QUESTION 7

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Colors of jackets in a men’s clothing store is an example of:

Select one:

A. Continues Variable

B. Discrete Variable

C. Quantitative Variable

D. Qualitative Variable

QUESTION 8

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A researcher wishes to survey the opinions of customers at local malls, she selected 5 malls from a total of 12 malls in a city. The number of ways that the selection can be made is :

Select one:

A. 692

B. 792

C. 892

D. 992

QUESTION 9

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The intercept of the regression equation for the following data:

Select one:

A. 87.3922

B. 89.3421

C. 85.3421

D. 83.3421

QUESTION 10

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The mean for the data values “ 87, 85, 80, 78, 86, 90” is:

Select one:

A. 85

B. 80

C. 87

D. 84.1

LIFO Perpetual Inventory

The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a three-month period ending June 30 are as follows:

Required:

1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period.

3. Determine the ending inventory cost on June 30.