Roll-on (Ltd), South Africa , is a specialist manufacturer of ‘roller door’. In seeking to expand its operations, it has the opportunity to acquire an American subsidiary company, Door Dynamics or set up a new division in South Africa. The relevant figures for these two options are as follows

Set up new division at home (RSA)      

Acquisition (Door Dynamics)

Additional information:

• Project life is 10 years
• Roll-on (Ltd) current cost of capital is 12%
• Inflation in the USA is expected to be below the South African inflation by 3% per year, throughout the life of the project.(Hint: use 9% as discount rate)
• Assume the current rate of R16 to 1 USD.

Required

1.1) Make all the necessary calculations for the 2 options.

1.2) Advise Roll-on (Ltd) on the viability of the 2 options.

You are required to use TVM calculations with cash flows and NPV

According to a survey in PARADE magazine, almost half of parents say their children's weight is fine. Only 9% of parents describe their children as overweight.† However, the American Obesity Association says the number of overweight children and teens is at least 15%. Suppose that you sample n = 600 parents and the number who describe their children as overweight is x = 58.

(a)

How would you test the hypothesis that the proportion of parents who describe their children as overweight is less than the actual proportion reported by the American Obesity Association? (Round your answers to two decimal places.)

State the null and alternative hypotheses. (Choose Correct Letter)

a) H₀: p ≠ 0.15 versus H_a: p < 0.15

b) H₀: p ≠ 0.09 versus H_a: p < 0.09

c) H₀: p = 0.09 versus H_a: p > 0.09

d) H₀: p = 0.15 versus H_a: p > 0.15

e) H₀: p = 0.15 versus H_a: p < 0.15

Find the test statistic and rejection region. (Round your answers to two decimal places. If the test is one-tailed, enter NONE for the unused region.)

test statistic:   z=

rejection region: z>

z<

(b)

What conclusion are you able to draw from these data at the α = 0.05 level of significance? (Choose Correct Letter)

a) H₀ is not rejected. There is sufficient evidence to indicate that the proportion of parents who describe their children as overweight is less than the actual proportion reported by the American Obesity Society.

b) H₀ is not rejected. There is insufficient evidence to indicate that the proportion of parents who describe their children as overweight is less than the actual proportion reported by the American Obesity Society.    

c) H₀ is rejected. There is insufficient evidence to indicate that the proportion of parents who describe their children as overweight is less than the actual proportion reported by the American Obesity Society.

d) H₀ is rejected. There is sufficient evidence to indicate that the proportion of parents who describe their children as overweight is less than the actual proportion reported by the American Obesity Society.

(c)

What is the p-value associated with this test? (Round your answer to four decimal places.)

p-value =

1. Professor Plum is negotiating to buy a parcel of property for his business. The seller of the property is asking Php 170,000 for the property. The assessed value of the property for property tax purposes is Php 125,000. The property is presently insured by the owner for Php 135,000. Professor Plum originally offered the seller Php 130,000 for the property. Professor Plum and the seller agreed on the purchase price of Php 150,000. Shortly, after the purchase is made by Professor Plum, he is offered Php 175,000 for the same property. At what price would Professor Plum record the property on the books of his business?

2. In November and December 2016, Azure Today, Inc. a newly established magazine publisher, received Php 7,200,000 for 1,000 three-year subscriptions at Php 2,400 per year. The first issue of the magazine is for January 2017. How much should the company report in its 2016 income statement for subscription revenue?

3. DEF Co. bought supplies from GHI bookstore for P1,000 cash on Jan. 1 2017. He used P600 of supplies throughout the year. DEF Co. was paid by JKL Inc. for P6,000 on August 1, 2017 for services to be rendered monthly throughout the year for 12 months. DEF Co. prepares adjusting entries for these transactions under the method that initially records prepaid expenses as expenses and records unearned revenues as revenues. Also, the company follows the calendar year in preparing its adjusting entries. What is the net profit or loss for the year from these transactions? (Indicate if profit or loss.)

4. At GHI Ltd., the following errors were discovered after the transactions had been journalized and posted.
a. A collection on account from a customer for Php 1,560 was recorded as a debit to Cash Php 1,560 and a credit to Service Revenue for Php 1,560.
b. The purchase of store supplies on account for Php 2,240 was recorded as a debit to Store Supplies Php 2,420 and a credit to Accounts Payable Php 2,420.
Prepare the correcting entry for error a.
Prepare the correcting entry for error b.

The following are regression results where Car Price is the dependent variable:

Regression Statistics

?2=0.446R2=0.446 Adjusted ?2=0.441R2=0.441 Observations = 804

Car Price is measured in dollars. The independent variables are:

• Mileage: number of miles the car has been driven
• Cylinder: number of cylinders in the engine
• Liter: a more specific measure of engine size
• Doors: number of doors
• Cruise: dummy variable representing whether the car has cruise control (1 = cruise, 0 = no cruise)
• Sound: dummy variable representing whether the car has upgraded speakers (1 = upgraded, 0 = standard)
• Leather: dummy variable representing whether the car has leather seats (1 = leather, 0 = cloth)

Question 17

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This model (set of independent variables) explains approximately how much of the variation in car prices in this dataset?

Select one:

a. 80.480.4

b. 44.144.1

c. 1−0.441=55.91−0.441=55.9

d. 44.644.6

Question 18

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What is true about the estimated coefficients?

Select one:

a. The "Mileage" coefficient is unexpectedly small compared to the others, suggesting that miles driven is unimportant in the selling price of a used car.

b. The "Sound" coefficient is unexpectedly negative, suggesting that cars with upgraded speakers are associated with a lower selling price.

c. The negative "Door" coefficient indicates that more doors on a car reduce the car's mileage.

d. The "Mileage" coefficient is unexpectedly negative, since higher miles driven should be associated with a higher selling price.

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The results from the ?t-statistics and ?p-values suggests that

Select one:

a. Mileage, Liter, Doors, and Sound are all insignificant since the ?t-stats are negative.

b. Only the coefficient for "Liter" is statistically insignificant. All of the other coefficients are statistically significant at the 1% level.

c. Mileage, Cylinder, Doors, Cruise, and Leather are all insignificant since the ?p-values are zero, meaning unrelated to car price.

d. "Liter" is the only statistically significant estimate since it's ?p-value is 36.4%.

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Which of the following statements is correct, based on the regression results above?

Select one:

a. Every additional mile driven increases the price of the car by $0.17

b. Since the "Liter" coefficient is insignificant, the true effect is actually +787.22 and not -787.22

c. Having four doors instead of two is associated with more than a $3,000 lower price, everything else equal.

d. Cars with cruise control have about 6,300 fewer miles on them than cars without cruise control, everything else equal.

1. Flexible Budget for Assembly Department

Cabinaire Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assembles filing cabinets in an Assembly Department. Assume the following information for the Assembly Department:

Prepare a flexible budget for 10,000, 13,000, and 15,000 filing cabinets for the month of March in the Assembly Department similar to Exhibit 5. Enter all amounts as positive numbers.

2.

Production Budget

Weightless Inc. produces a Bath and Gym version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows:

The finished goods inventory estimated for October 1, for the Bath and Gym scale models is 1,800 and 2,600 units, respectively. The desired finished goods inventory for October 31 for the Bath and Gym scale models is 1,300 and 2,800 units, respectively.

Prepare a production budget for the small and large scales for the month ended October 31. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

3.

Sales and Production Budgets

Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget:

a. Prepare a sales budget.

b. Prepare a production budget. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

An author argues that more​ American-born baseball players have birth dates in the months immediately following July 31 because that was the age cutoff date for nonschool baseball leagues. The table below lists months of births for a sample of​ American-born baseball players and​ foreign-born baseball players. Using a

0.01

significance​ level, is there sufficient evidence to warrant rejection of the claim that months of births of baseball players are independent of whether they are born in​America? Do the data appear to support the​ author's claim

Identify the null and alternative hypotheses for this test.

A.

Upper H 0H0​:

The frequency of births is dependent of the month.

Upper H 1H1​:

The frequency of births is independent of the month.

B.

Upper H 0H0​:

The frequency of births is independent of the month.

Upper H 1H1​:

The frequency of births is dependent of the month.

C.

Upper H 0H0​:

Months of births of baseball players are independent of where they are born.

Upper H 1H1​:

Months of births of baseball players are dependent of where they are born.Your answer is correct.

D.

Upper H 0H0​:

Months of births of baseball players are dependent of where they are born.

Upper H 1H1​:

Months of births of baseball players are independent of where they are born.

Identify the test statistic.

nothing

​(Round to three decimal places as​ needed.)

1. What significant research in psychophysics was done during the 19th century that resulted in a major contribution to the "new psychology" becoming a legitimate science?

a. Be sure to name the two contributors and discuss their findings. Describe three ways that their work contributed to the new science of psychology.

b. What early psychologist was most influenced by the psychophysical work?

2. Explain briefly, why psychology has a "long history but only a short past". What well known psychologist recognized this aspect of the discipline?

3. Provide evidence for John Locke being referred to as a child psychologist based on the "advice" letters written. Explain how his views supported the empiricist approach and provide two reasons for how they specifically supported the new science of psychology.

4. What American influenced the work of early physiologists work on frog's legs? Why?