Novell Networks manufactures five different models of network interface cards for desktop and laptop computers. As summarized in the following table, each of these network devices require differing amounts of printed circuit (PC) board, resistors, memory chips, and assembly time. Per Unit Requirements HyperLink FastLink SpeedLink MicroLink EtherLink PC Board, sq. in. 20 15 10 8 5 Resistors 28 24 18 12 16 Memory Chips 8 8 4 4 6 Labor (in hours) .75 .60 .50 .65 1.0 The unit wholesale price and manufacturing cost for each model are as follows: Per Unit Revenue and Costs HyperLink FastLink SpeedLink MicroLink EtherLink Wholesale Price $189 $149 $129 $169 $139 Manufacture Cost $136 $101 $96 $137 $101 In the next production period, Novell Networks has 80,000 square inches of PC board, 100,000 resistors, 30,000 memory chips, and 5,000 hours of assembly time available. The company can sell all the product it can manufacture, but the marketing department wants to be sure that it produces at least 500 units of each network interface card. Determine the product mix that maximizes profit.

Please use Excel

QUESTION 5

The variable Z has a standard normal distribution. The probability P(- 0.5 < Z < 1.0) is:

QUESTION 6

If a random variable X is normally distributed with a mean of 30 and a standard deviation of 10, then P(X=20) =

QUESTION 7

If P( -z < Z < +z) = 0.8812, then the z-score is:

QUESTION 8

If the mean of a normal distribution is negative,

QUESTION 9

The starting salaries of individuals with an MBA degree are normally distributed with a mean of $90,000 and a standard deviation of $20,000. What is the probability that a randomly selected individual with an MBA degree will have a starting salary of at least $78,500?

1. 0.2810
2. 0.8840
3. 0.7190
4. 0.8210

QUESTION 10

The starting salaries of individuals with an MBA degree are normally distributed with a mean of $90,000 and a standard deviation of $20,000. What is the lowest salary for those individuals with an MBA degree whose starting salary is in the top 25 percent?

1. $104,500
2. $103,600
3. $83,750
4. $106,400

A random sample of n = 15 heat pumps of a certain type yielded the following observations on lifetime (in years):

(a) Assume that the lifetime distribution is exponential and use an argument parallel to that of this example to obtain a 95% CI for expected (true average) lifetime. (Round your answers to two decimal places.)

  ,

years

(b) How should the interval of part (a) be altered to achieve a confidence level of 99%?

A 99% confidence level requires using a new value of n to capture an area of 0.005 in each tail of the chi-squared distribution.A 99% confidence level requires using a new value of n to capture an area of 0.1 in each tail of the chi-squared distribution.    A 99% confidence level requires using critical values that capture an area of 0.1 in each tail of the chi-squared distribution.A 99% confidence level requires using critical values that capture an area of 0.005 in each tail of the chi-squared distribution.

(c) What is a 95% CI for the standard deviation of the lifetime distribution? [Hint: What is the standard deviation of an exponential random variable?] (Round your answers to two decimal places.)

  ,

years

A base dissociation (hydrolysis) takes the following reaction pattern:

Base    +   H₂O    = OH^-     +    Conjugate acid     

For example the dissociation reaction of CH3COO- is presented as

CH₃COO^- +    H₂O   =     OH^-    +      CH₃COOH           

If you write down the dissociation (hydrolysis) reaction of CN^-, it is presented as [Q1].

Do not try to make subscriptization or superscriptization. Just type numbers, and + and - signs in the same way as you type words. Examples: H3O+, Cl-, HPO42-, etc.

In order to give a space, hit the space bar once after typing each compound formula or ion formula or + sign or equal sign.

Write down the expression of the equilibrium constant of the combined reaction of the following two dissociation reactions:

HCN + H₂O = H₃O⁺ + CN^-   K_a

CN^- + H₂O =   HCN + OH^- K_b

Do not try to make subscriptization or superscriptization. Just type numbers, and + and - signs in the same way as you type words. Examples: H3O+, Cl-, HPO42-, etc.

The equilibrium constant for the following reaction at 500 K is assumed to be 100.

             3H₂      +     N₂      =     2NH₃

Concentrations of H₂, N₂, and NH₃ are observed to be 1.0 M, 2.0 M, and 10.0 M, respectively, at the same temperature of 500 K.

An equilibrium has______________reached. The reaction should proceed to the __________________.

Type the word left or right for the second question.  

• As a financial analyst, you must evaluate a proposed project to produce printer cartridges. The equipment would cost $55,000, plus $10,000 for installation. Annual sales would be 4,000 units at a price of $50 per cartridge, and the project's life would be 3 years. Current assets would increase by $5,000 and payables by $3,000. At the end of 3 years, the equipment could be sold for $10,000. Depreciation would be based on the MACRS 3-year class; so the applicable rates would be 33%, 45%, 15%, and 7%. Variable costs would be 70% of sales revenues, fixed costs excluding depreciation would be $30,000 per year, the marginal tax rate is 40%, and the corporate WACC is 11%.
• 1. What is the terminal year project cash flow?
• You did a scenario analysis to better understand the project’s NPV:

The firm's project CVs generally range from 1.0 to 1.5. A 3% risk premium is added to the WACC if the initial CV exceeds 1.5, and the WACC is reduced by 0.5% if the CV is 0.75 or less. Then a revised NPV is calculated. What WACC should be used for this project?

1. What is the net present value (NPV) of the project?

2. Based on this NPV, should Hasbro undertake this project?

3. What is the internal rate of return (IRR) of this project? You can find IRR by varying the discount rate in your table until NPV is zero. That new discount rate will be the IRR.

Your grade will be based on the completeness of your cash flow table and calculations as well as your answers above.

Monopoly expansion project Hasbro is considering a new high-profile marketing project to aggressively market a card game version of Monopoly called Monopoly Deal. The Marketing department would spend an extra $1.0 million per year for the next five years to increase TV commercials and print ads featuring Monopoly Deal. The primary Monopoly factory would be expanded at a cost of $5.5 million to manufacture more of the games. Assume that the factory expansion would be completed in the first year of the project. The Marketing department estimates that the marketing campaign will increase Hasbro sales enough to bring in additional cash inflows of $2.5 million per year for the five-year period. Hasbro uses a discount rate of 15% to evaluate projects such as this one. Use a 5-year time horizon, and assume no salvage value of the factory expansion at the end of this period.

1. What is the net present value (NPV) of the project?

2. Based on this NPV, should Hasbro undertake this project?

3. What is the internal rate of return (IRR) of this project? You can find IRR by varying the discount rate in your table until NPV is zero. That new discount rate will be the IRR.

Your grade will be based on the completeness of your cash flow table and calculations as well as your answers above.

Monopoly expansion project Hasbro is considering a new high-profile marketing project to aggressively market a card game version of Monopoly called Monopoly Deal. The Marketing department would spend an extra $1.0 million per year for the next five years to increase TV commercials and print ads featuring Monopoly Deal. The primary Monopoly factory would be expanded at a cost of $5.5 million to manufacture more of the games. Assume that the factory expansion would be completed in the first year of the project. The Marketing department estimates that the marketing campaign will increase Hasbro sales enough to bring in additional cash inflows of $2.5 million per year for the five-year period. Hasbro uses a discount rate of 15% to evaluate projects such as this one. Use a 5-year time horizon, and assume no salvage value of the factory expansion at the end of this period.

1. Greenwood ltd was listed at the Utopian stock exchange market ten years ago. The following table presents ten years of return data for the stock of Greenwood ltd and for the market index.

Required

1. Plot the returns of Greenwood ltd and the market index on a graph, with the market index’s returns on the horizontal axis
2. Derive the line of best fit
3. Estimate the beta factor of Greenwood ltd stock and comment on your result
4. Compute the coefficient of correlation between the returns the stock of Greenwood ltd and for the market index. Comment on your answer
5. State and explain factors affecting the return of stocks in your home country’s exchange market
6. Explain how an investor can construct a well diversified stock portfolio at your home country’s exchange market
7. Outline the main differences between active and passive stock portfolio management strategies.

2. Explain how foreign portfolio flows affect stock market performance in Kenya (Use a case study of Nairobi securities exchange)

A random sample of n = 15 heat pumps of a certain type yielded the following observations on lifetime (in years):

(a) Assume that the lifetime distribution is exponential and use an argument parallel to that of this example to obtain a 95% CI for expected (true average) lifetime. (Round your answers to two decimal places.)

  ,

years

(b) How should the interval of part (a) be altered to achieve a confidence level of 99%?

A 99% confidence level requires using a new value of n to capture an area of 0.005 in each tail of the chi-squared distribution.A 99% confidence level requires using critical values that capture an area of 0.1 in each tail of the chi-squared distribution.    A 99% confidence level requires using critical values that capture an area of 0.005 in each tail of the chi-squared distribution.A 99% confidence level requires using a new value of n to capture an area of 0.1 in each tail of the chi-squared distribution.

(c) What is a 95% CI for the standard deviation of the lifetime distribution? [Hint: What is the standard deviation of an exponential random variable?] (Round your answers to two decimal places.)

  ,

years