1. On January​ 1, 2016, TXU Europe Corporation purchased​ 40% of the outstanding stock of Alberta Power Pool Corporation for​ $800,000. Net income reported by Alberta Power Pool Corporation for 2016 and 2017​ was, respectively,​ $100,000 and​ $125,000. Dividends paid by Alberta Power Pool Corporation during 2016 and 2017​ were, respectively,​ $60,000 and​ $75,000. The long−term investment will appear on TXU Europe​ Corporation's December​ 31, 2017, balance sheet​ at:

A.​$864,000

B.​$836,000

C.​$746,000

D.$890,000

2.Retail Energy Corporation paid​ $1,300,000 on January​ 1, 2017, to purchase​ 32% of the outstanding shares of Natural Gas Limited. In 2017 Natural Gas Limited reported​ $450,000 of net income and paid​ $100,000 in dividends. If this investment is accounted for using the equity method of​ accounting, what will be the impact on the books of Retail Energy​ Corporation?

A.the Investment account will be increased by​ $144,000

B.income of​ $144,000 will be recorded

C.the Investment account will be decreased by​ $144,000

D.income of​ $32,000 will be recorded

3.Under the equity method of accounting for​ investments, dividends paid by the investee are recorded by the investor​ as:

A.a credit to the Investment account of the investor company

B.no entry is made to record dividends in this accounting situation

C.a debit to the Investment account of the investor company

D.a credit to Dividend Revenue of the investor company

4.Corporations invest in ashort−term investment:

A.to sell it for more than its cost

B.to generate a higher profile

C.to invest excess cash temporarily and to increase income

D.to park cash temporarily

86

High-end stores like Nordstrom’s and Dillard’s charge higher prices versus stores like J.C. Penny, Sears and Macy’s. The more expensive stores often try to offer better customer service and they encourage their sales people to start conversations with customers to find out what they would like.

What kind of microeconomic strategy is this?

Multiple Choice

• An elastic demand curve counter-strategy

• . None of the above

• A non-price strategy

• A cost reduction strategy

87

At the equilibrium point of the demand and supply curves, most buyers and sellers will be satisfied with the prices and quantities being offered.       

True or False

88

A monopoly creates a situation whereby society must suffer and pay higher prices for less output versus the lower prices and higher output we would have if we had a free market. This situation of loss is known as what?

Multiple Choice

• Inefficiency Loss

• All of the statements are false

• Welfare Loss to Society

• Total Product Loss

89

Net Profit means the exact same thing as Economic Profit.    

True or False

90

A negative externality is something outside the free market system. Which item or items below represent a negative externality?

Multiple Choice

• When the state government gives grant money to a city to build a new bridge

• A 9.8 earthquake that destroys a city

• The K-12 school system inside a city

• When the government opens up a new and beautiful city park

1. Based on the sample, the 95% confidence interval for the blood level of inorganic phosphorous is (1.153, 1.247). Which one of teh following statements is a correct interpretation of this interval? A. If we took 100 additional samples of the same size and from each compute a 95% confidence interval, 95 of the intervals are identical to (1.153, 1.247). B. There is a 95% chance that the sample average inorganic phosphorus level of a random sample of 12 healthy elderly subjects is in between 1.153 mmol/l and 1.247 mmol/l. C. We are 95% confident that the true mean phosphorous level is in between 1.153 and 1.247 mmol/l. D. There is a 95% chance that the true mean phosphorous level is in between 1.153 mmol/l and 1.247 mmol/l.

2. In Sharon Woods Park, a biologist is trapping chipmunks to study their population. Let A be the event that the chipmunk is male and B be the event the chipmunk is pregnant. Which of the following is true about A and B? A. A and B are independent B. P(A) = 1- P(B) C. All of the given options are true. D. P(A or B) = P(A) + P(B)

3. Hodgkin lymphoma is one of the most curable forms of cancer. The five-year survival rate for this cancer is 72%. If three unrelated (independent) patients are newly diagnosed with Hodgkin lymphoma, the probability that none of the three survive for five years is 0.022. What is the probability that at least one survives for five years? A. 0.72 B. 0.76 C. 0.978 D. 0.575

2. Airbiz Food Products produces a wide variety of food and related products. The? company's tomato-canning operation relies partly on tomatoes grown on Airbiz?'s own farms and partly on tomatoes bought from other growers. Airbiz?'s tomato farm is on the edge of? Sharpestown, a? fast-growing, medium-sized city. It produces 14 million pounds of tomatoes a year and employs 58 persons. The annual costs of tomatoes grown on this farm are as? follows:

Variable production costs $605,000

Fixed production costs 1,250,000

Shipping costs (all variable) 230,000

Total costs $2,085,000

Fixed production costs include depreciation on machinery and? equipment, but not on land because land should not be depreciated. Airbiz owns the? land, which was purchased for $600,000 many years ago. A recent appraisal placed the value of the land at $30 million because it is a prime site for an industrial park and shopping center. Airbiz could purchase all the tomatoes it needs on the market for $0.30 per pound delivered to its factory. If it did? this, it would sell the farmland and shut down the operations in Sharpestown. If the farm were? sold, $325,000 of the annual fixed costs would be saved. Airbiz can invest excess cash and earn an annual rate of 12%.

1. How much does it cost Airbiz annually for the land used by the tomato? farm?

2. How much would Airbiz save annually if it closed the tomato? farm? Is this more or less than would be paid to purchase the tomatoes on the? market?

3. What ethical issues are involved with the decision to shut down the tomato? farm?

II. For each of the following unsupported claims, indicate whether or not it would be reasonable to accept the claim. Also state the criteria you use in reaching your decision.

1. Tigers live in Africa.

2. There are wolves in Yellowstone National Park.

3. Black cats bring bad luck.

4. Ninety-eight percent of statistics are just made up.

5. Dunleavy Ford: Nobody sells for less. (heard on the radio)

6. The closest star to the earth, other than the sun, is Proxima Centauri. (said by your astronomy instructor)

7. I fought in World War II. (said by a man who appears to be about forty-five years old)\

8. There is no hard scientific evidence that smoking is addictive. (said by a tobacco company executive)

9. Parts of Alaska are farther west than Hawaii. (overheard on the bus)

10. Parts of Alaska are farther west than Hawaii. (said by your geography instructor)

11. Analgex brand aspirin: Nothing works stronger or faster on your tough headaches. (said by a paid sports celebrity)

12. I read the entire Encyclopedia Britannica last summer. (said by a stranger at a party)

13. Most hate crimes in this country are not committed against African Americans or Jews. They are committed against evangelical Christians. (said by the late TV evangelist Jerry Falwell)

14. Did you know that gun control laws actually increase the violent crime rate? (statement on anti–gun control Web page)

15. A Space Alien Tried to Mate with My Harley!

ABC company is considering producing a new range of smartphones that will require it to build a

new factory. Feasibility studies have been done on the factory which cost $5 million. The studies

have found the following:

1. The factory will cost $25 million and will have a useful life of 20 years.

2. The land where the factory will go is currently used as a carpark for workers and it is assumed that the company will have to pay $200000 per year for their workers to park in a nearby carpark.

3. The factory will be depreciated on a straight line basis and will have a salvage value of $0 but it is believed that most of it can be sold for scrap after 20 years for $50000.

4. Due to the nature of the business they are in, they will have to perform some environmental tests to make sure that some of the chemicals they are using are not entering the ground water around the factory. These tests will be performed every 5 years and cost $625000.

5. Through the building of this factory and the selling of the phones it produces, it’s revenue will increase by $5 million in year 1 and remain at this level for the operational life of the factory.

6. The extra costs that the company accrues per year due to the project are $435000 for labour, $50000 for overhead like power and water bills and marketing costs for the new line of phones will be $500000 per year but will decrease by $15000 per year as the phone gains greater penetration.

7. The company’s current cost of capital is 8% per year.

8. The tax rate is 30%.

9. The project requires an initial investment in working capital of $1000000 that is returned

   in year 20.

Use the above information to answer the following.

A. Calculate the free cash flows that come from this project for the 20 years it is operational. ​

Zues Sporting Goods is a manufacturer of falconry equipment. Zues is analyzing the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $205,000. The equipment will have an initial cost of $950,000 and have a 6-year life. There is no salvage value for the equipment. If the hurdle rate is 7%, what is the approximate net present value? Ignore income taxes.

1. $950,000
2. $27,132
3. $977,132
4. $316,667

Robolo Aviation manufactures flight simulators to train new pilots. Robolo is debating the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $200,800. The equipment will have an initial cost of $901,200 and have a 6-year life. There is no salvage value for the equipment. If the hurdle rate is 10%, what is the internal rate of return? Ignore income taxes.

1. Between 6% and 8%
2. Between 8% and 10%
3. Between 10% and 12%
​​​​​​​4. less than zero

Daniel's Theme Park is a family favorite destination. To keep up with other theme parks, Daniel is thinking of investing in a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $108,000. The equipment will have an initial cost of $450,000 and have a 5-year life. The salvage value of the equipment is estimated to be $80,000. If the hurdle rate is 12%, what is the approximate net present value? Ignore income taxes.
1. Positive $80,000
2. Positive $450,000
3. Zero
​​​​​​​4. Negative $15,290

BAD company is considering producing a new range of smartphones that will require it to build a

new factory. Feasibility studies have been done on the factory which cost $5 million. The studies

have found the following:

1. The factory will cost $25 million and will have a useful life of 20 years.

2. The land where the factory will go is currently used as a carpark for workers and it is assumed that the company will have to pay $200000 per year for their workers to park in a nearby carpark.

3. The factory will be depreciated on a straight line basis and will have a salvage value of $0 but it is believed that most of it can be sold for scrap after 20 years for $50000.

4. Due to the nature of the business they are in, they will have to perform some environmental tests to make sure that some of the chemicals they are using are not entering the ground water around the factory. These tests will be performed every 5 years and cost $625000.

5. Through the building of this factory and the selling of the phones it produces, it’s revenue will increase by $5 million in year 1 and remain at this level for the operational life of the factory.

6. The extra costs that the company accrues per year due to the project are $435000 for labour, $50000 for overhead like power and water bills and marketing costs for the new line of phones will be $500000 per year but will decrease by $15000 per year as the phone gains greater penetration.

7. The company’s current cost of capital is 8% per year.

8. The tax rate is 30%.

9. The project requires an initial investment in working capital of $1000000 that is returned

   in year 20.

Use the above information to answer the following.

Calculate the NPV, IRR and payback period of the project. Should they go ahead with the project? ​

1. The research around Leona’s Tacos has created quite a buzz and business is great. Leona is planning on expanding her menu and she’s going to start with a new taco filling. She is considering her own black bean mix “Savor” and Hadey’s famous braise of seitan “Praise”. She naturally performs a blind taste test with 20 randomly selected judges from Avocado Park. Each judge is randomly served a taco filled with either “Savor” or “Praise” and asked to assess the experience using a rubric that results in a score from 0-100. Leona’s findings can be found in the data below questions
   1. Identify the populations of interest.
   2. Identify the variable of interest.
   3. What type of variable is being studied here?
   4. What would be a suitable parameter for determining if the taco filling receive different scores?
   5. Write a null hypothesis for Leona’s study.
   6. Write an alternative hypothesis for Leona’s study.
   7. Leona decides to use a significance level of 0.05. What conditions must be met to test the hypothesis in part e?
   8. Calculate a P-Value for your null hypothesis from part e and make a decision about the null hypothesis based on this P-Value and the significance level stated in part g.
   9. Summarize your decision from part h.

"Savor"BlackBeans: 71, 80, 81, 77, 82, 72, 79, 85, 78, 76

"Praise"Seitan: 83, 79, 77, 85, 80, 86, 78, 84, 83, 80

Recording Observations Unobtrusively record observations in a public place of your choice for at least thirty minutes or more. The place must have at least ten people to observe. Since you are playing the role of an unobtrusive investigator, you must not disturb the people and must be positioned so that the people will not really take notice of you. You should watch people and focus on behaviors. The behaviors might be ordinary or interesting. You might even choose to look at behaviors related to a theme, such as how people relax or you can look at dyadic interactions. No matter what you choose to observe, you should describe what you witness. Record the observations in your notebook in a 1- to 2-page Microsoft Word document. The observations should not be conducted with any specific notions or theories. Type and submit your notes, which should be at least 500 words. Include the date of the observation, the time, and the setting. Along with your observation notes, include five specific study ideas that come to mind because of your observations. For example: After observing mothers and children in the park, I would like to investigate whether mothers with multiple children allow the children to venture further away from them as compared to mothers with one child. You must also state hypotheses for at least two of your study ideas. For example, you might hypothesize mothers with only one child will keep their child closer than mothers with multiple children. *** Please help with my homework I am struggling with. Thank you.***