Questions
We are evaluating a project that costs $500,000 for the equipment, has a five-year life, and...

We are evaluating a project that costs $500,000 for the equipment, has a five-year life, and the market value of the equipment at the end of 5 years is 50,000. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 30,000 units per year. Price per unit is $40, variable cost per unit is $20, and fixed costs are $100,000 per year. The tax rate is 35 percent, and we require a return of 14 percent on this project.

a. Calculate the accounting break-even point.

b. Calculate the base-case cash flow and NPV. What is the sensitivity of NPV to changes in the sales figure? Explain what your answer tells you about a 500-unit decrease in projected sales.

c. What is the sensitivity of NPV to changes in the variable cost figure? Explain what your answer tells you about a $1 decrease in estimated variable costs.

In: Finance

Sensitivity Analysis and break-even point We are evaluating a project that costs $780,000, has an eight-year...

Sensitivity Analysis and break-even point We are evaluating a project that costs $780,000, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 92,000 units per year. price per unit is $37, variable cost per unit is $23, and fixed costs are $875,000 per year. The tax rate is 35 percent, and we require a return of 15 percent on this project.

A calculate the accounting break-even point.

B Calculate the base-case cash flow and NPV. What is the sensitivity of the NPV to hanges in the sales figure? Explain what your answer tells you about a 5---unit decrease in projected sales.

C What is the sensitivity of OCF to changes in the variable cost figure? Explain what your answer tells you about a $1 decrease in estimated variable costs.

In: Finance

Consider the accompanying 2 × 3 table displaying the sample proportions that fell in the various...

Consider the accompanying 2 × 3 table displaying the sample proportions that fell in the various combinations of categories (e.g., 12% of those in the sample were in the first category of both factors).

1 2 3
1 0.12 0.20 0.27
2 0.08 0.11 0.22

(a) Suppose the sample consisted of n = 100 people. Use the chi-squared test for independence with significance level 0.10. State the appropriate hypotheses

.H0: pij =

pi
pj

for every pair (i, j)
Ha: at least one pij

pi
pj

H0: pij

pi
pj

for every pair (i, j)
Ha: at least one pij =

pi
pj

    

H0: pij = pi · pj

for every pair (i, j)

Ha: at least one pijpi · pj

H0: pijpi · pj

for every pair (i, j)

Ha: at least one pij = pi · pj


Calculate the test statistic. (Round your answer to two decimal places.)
χ2 =  

What can be said about the P-value for the test?

P-value < 0.0050.005 < P-value < 0.01    0.01 < P-value < 0.0250.025 < P-value < 0.050.05 < P-value < 0.10P-value > 0.10


State the conclusion in the problem context.

Reject H0. An individual's category with respect to factor 1 is not independent of the category with respect to factor 2.Fail to reject

H0. An individual's category with respect to factor 1 is independent of the category with respect to factor 2.   

Reject H0. An individual's category with respect to factor 1 is independent of the category with respect to factor 2.

Fail to reject H0. An individual's category with respect to factor 1 is not independent of the category with respect to factor 2.


(b) Suppose the sample consisted of n = 1000 people. Use the chi-squared test for independence with significance level 0.10.
Calculate the test statistic. (Round your answer to two decimal places.)
χ2 =  

What can be said about the P-value for the test?

P-value < 0.005

0.005 < P-value < 0.01   

0.01 < P-value < 0.025

0.025 < P-value < 0.05

0.05 < P-value < 0.10

P-value > 0.10


State the conclusion in the problem context.

Fail to reject H0. An individual's category with respect to factor 1 is independent of the category with respect to factor 2.Reject

H0. An individual's category with respect to factor 1 is independent of the category with respect to factor 2.   

Reject H0. An individual's category with respect to factor 1 is not independent of the category with respect to factor 2.

Fail to reject H0. An individual's category with respect to factor 1 is not independent of the category with respect to factor 2.


(c) What is the smallest sample size n for which these observed proportions would result in rejection of the independence hypothesis? (Round your answer up to the next whole number.)
n =  

In: Statistics and Probability

In a box of 50 markers, 30 markers are either red or black and 20 are...

In a box of 50 markers, 30 markers are either red or black and 20 are missing their caps. If 12 markers are either red or black and are missing their caps, find the probability that a randomly selected marker is red or black or is missing its cap.

In: Statistics and Probability

Please answer the following questions and please follow the rubrics attached: 1. Describe, state and explain...

Please answer the following questions and please follow the rubrics attached:

1. Describe, state and explain the three primary objectives of descriptive epidemiology and,

2. How you can apply them to your working task.

In: Operations Management

Compare and contrast an all-hazards approach with a scenario planning approach. Which approach best fits local-level...

Compare and contrast an all-hazards approach with a scenario planning approach. Which approach best fits local-level government? Which approach best fits the state- and federal-level governments? Explain your answer.

In: Psychology

a) Suppose the money supply increases. If the demand for money curve remains the same, show...

a) Suppose the money supply increases. If the demand for money curve remains the same, show what will happen to prices of goods and the PPM and explain. Use a graph to illustrate. Clearly label your graph.

b) Suppose that at the same time the supply of goods increases, and overall, prices have risen. What has happened? Draw a new PPM graph illustrating your point and explain. Clearly label your graph.

In: Economics

Performing, embodying, and constructing gender. You read quite a few readings about the social construction of...

Performing, embodying, and constructing gender.

You read quite a few readings about the social construction of gender. Give examples in your own loves how you might "perform" gender. Think about why you do it. What do you think this performance tells you about the gender? How does this performance reinforce gender norms? Can we use this performance to remake ideas of gender?

In: Psychology

A Bloomington resident commutes to work in Indiannapolis, and he encounters several traffic lights on the...

A Bloomington resident commutes to work in Indiannapolis, and he encounters several traffic lights on the way to work each day. Over a period of time, the following pattern has emerged:

- Each day the first light is green

- If a light is green, then the next one is always red

- If he encounters a green light and then a red one, then the next will be green with probability 0.6 and red with probability .4.

- If he encounters two red lights in a row, then the next will be green with probability p and red with probability 1-p.

Formulate a Markov Chain model for this situation (Identify states and find the transition matrix).

In: Statistics and Probability

History: Tracy Moore, a 29-year-old white female, was transported by ambulance to the emergency room after...

History: Tracy Moore, a 29-year-old white female, was transported by ambulance to the emergency room after being rescued from her burning house. She was asleep at night when a spark from the family fireplace started a fire, leaving her trapped in her bedroom. By the time the fire rescue squad arrived, she had suffered severe burns. Vitals at the scene were as follows: HR = 110, BP = 150/90; R = 22, Temperature 100.1, SPO2 = 96% on Room Air. You are given the following information about her burns.


a. The back of her head is painful and sensitive to touch, the area is white with moderate edema and her hair is missing in places.


b. Her right hand is black and brown with minimal sensation and the burn extends up the front and back of her right arm to her shoulder.


c. Her right leg is red with no blisters and extremely painful. There is moderate edema. The burn is covering the back of her leg from her ankle to her buttocks.


1. What is the Total Body Surface Area burned based on the Rule of Nines for burns a, b, and c?


2. For each of the burns in a, b, and c indicate the type of burn based upon its description.


3. What type of pain management will Tracy require for each of the burns? Explain your answers.  


4. Name two complications Tracy is at risk for due to her specific burns and discuss how you will manage these complications.


In: Nursing