1.Victor is thinking about buying a $1,000 bond that has a 7% semiannual coupon and 14 years to maturity.  The expected rate in the marketplace for investments similar to this is 8%.

Will this bond be a premium or discount bond? __________________

What is the present value of the coupon stream? ________________

What is the present value of the face value? ____________________

What is the total value of the bond? __________________________

If the bond is priced at 98, should Victor buy or not buy? _________

2.Rosemary just received a call from a lawyer, who informed her that a distant cousin of hers left her 400 shares of preferred stock.  The attorney told Rosemary that the inheritance was worth approximately $20,000 and the shares paid a dividend of $3.80 per year.  What rate of return is the stock getting? _______________

If Rosemary knows that other investments similar to this one are earning 8%, should she keep the stock or sell it? ____________

3. Ted and Amy have found their dream house.  They will make monthly payments of $1,000 each for 20 years and the bank has quoted them a rate of 6%.  How much are Ted and Amy borrowing?

4. Classy Jewelry and More, Inc. is talking with its bank about a $360,000 commercial loan.  The loan will be for three years at 8% and will make LEVEL PRINCIPAL PAYMENTS at the end of each of the three years.  Write an amortization schedule for the loan and fill in the following blanks.

Amount of annual principal payment ___________________

Balance of loan at the end of year one __________________

Amount of interest in year two ________________________

Amount of the total payment in year two ______________

Total amount of interest paid over the life of the loan __________________

5. Use the formula for the following problem.

Katie has $5,300 saved from working summers.  She has it in an account earning 4.6% with semiannual compounding and will leave it there until she graduates from college in three years.  How much will she have when she graduates?

6.   Use the tables for the following problem.

Polly wants to buy her first home in five years.  She will need $15,000 as a down payment.  Polly just won some money on a gambling boat.  Her savings account, which is compounded quarterly, earns an annual rate of 8%.  How much should Polly set aside now out of her winnings to have enough for her down payment?

Table ________________

Row _________________

Column (rate) _________

Factor _______________

          Present Value ___________

7.  Anderson  Bank and Trust is advertising five year loans at a 7.8% APR with monthly payments.  What is the effective annual rate on this loan? _______________

8.  Dalton just bought a certificate of deposit at his bank and the rate printed on the front is 4.9%.  Dalton knows that inflation is running at 2.25%.

What is the APPROXIMATE real rate Dalton is getting? ________________

What is the EXACT real rate Dalton is getting? _________________

9.  Nancy’s Antiques, Inc. just added a whole new line of furniture to her product line.  Nancy expects this addition to result in record high dividends of $4.00 and $4.50 in the next two years.  After that, she thinks her growth will level off at its usual 4.5% rate.  The rate expected in the marketplace for investments similar to Nancy’s is 6%.

What is the current value of a share of Nancy’s? ______________

What will the value of a share be in year two (P₂)? ______________

What will the value of a share be in year twelve (P₁₂)? ______________

Andretti Company has a single product called a Dak. The company normally produces and sells 60,000 Daks each year at a selling price of $32 per unit. The company’s unit costs at this level of activity are given below:

Due to a strike in its supplier’s plant, Andretti Company is unable to purchase more material for the production of Daks. The strike is expected to last for two months. Andretti Company has enough material on hand to operate at 30% of normal levels for the two-month period. As an alternative, Andretti could close its plant down entirely for the two months. If the plant were closed, fixed manufacturing overhead costs would continue at 60% of their normal level during the two-month period and the fixed selling expenses would be reduced by 20% during the two-month period.

Utilizing Excel, create a spreadsheet similar to Exhibit 12-1 to compare alternatives. Display your results using the total cost approach. Utilize formulas for all calculations

EXHIBIT 12–1 Total and Differential Costs

CarryAll Company produces briefcases from leather, fabric, and synthetic material in a single production department. The basic product is a standard briefcase that is made from leather, lined with fabric. CarryAll has a good reputation in the market because the standard briefcase is a high quality item and has been well-produced for many years. Last year, the company decided to expand its product line and produce specialty briefcases for special orders. These briefcases differ from the standard in that they vary in size, they contain both leather and synthetic materials, and they are imprinted with the buyer’s logo, whereas the standard briefcase is simply imprinted with the CarryAll name in small letters. The use of some synthetic materials in the briefcase was made to hold down the materials costs. To reduce the labor costs per unit, most of the cutting and stitching on the specialty briefcases is done by automated machines which are used to a much lesser degree in the production of the standard briefcases. Because of these changes in the design and production of the specialty briefcases, CarryAll believed that they would cost less to produce than the standard briefcases. However, because they are specialty items, they were priced slightly higher—standards are priced at $30, specialty briefcases at $32. After reviewing last month’s results of operations, CarryAll’s President became concerned about the profitability of the two product lines because the standard briefcase showed a loss while the specialty briefcase showed a greater profit margin than expected. The President is wondering whether the company should drop the standard briefcase and focus entirely on specialty items. The cost data for last month’s operations as reported to the President are as follows:

Standard                                                               Specialty

Units Produced:                                                                                  10,000                                                    2,500

                Direct Materials:

                Leather                                  1.0 sq. yd.                                              $15.00       0.5 sq. yd.                         $ 7.50

                Fabric                                     1.0 sq. yd.                                                   5.00       1.0 sq. yd.                               5.00

                Synthetic                                                                                                 ____                                                        5.00

                Total Materials:                                                                                   $20.00                                                 $17.50

                Direct Labor:                        0.5 hr @ $12.00                                         6.00       0.25 hr. @ $12.00                 3.00

                Factory Overhead:              0.5 hr. @ $ 8.98                                         4.49      0.25 hr. @ $ 8.98                  2.24

                Cost per Unit                                                                                        $30.49                                                 $22.74

Factory overhead is applied on the basis of direct-labor hours. The rate of $8.98 per direct-labor hour was calculated by dividing the total overhead $50,500 for the month by the direct-labor hours of 5,625. As shown above, the cost of a standard briefcase is $0.49 higher than its $30 sales price whereas the specialty briefcase has a cost of only $22.74 for a gross profit per unit of $9.26. The problem with these costs is that they do not accurately reflect the activities involved in manufacturing each product. Determining the costs using ABC should provide better product costing data to help gauge the actual profitability of each product line.

Analyzing the Factory Overhead Costs The factory overhead costs must be analyzed to determine the activities causing the costs. Assume that the following costs and cost drivers have been identified.

Purchasing Department cost is $6,000. The major activity driving the purchasing department costs is the number of purchase orders processed. During the month, purchasing prepared the following number of purchase orders: For leather 20 For fabric 30 For synthetic material 50

Receiving and Inspecting Materials cost is $7,500. Receiving and inspecting costs are driven by the number of deliveries. During the month, the following number of deliveries were made: Leather 30 Fabric 40 Synthetic material 80

Setting Production Line cost is $10,000. Set-up activities involve changing the machines to produce the different types of briefcases. A set-up for production of the standard briefcases requires one hour while set-up for the specialty briefcases requires two hours. Standard briefcases are produced in batches of 200; specialty briefcases are produced in batches of 25. During last month, there were 50 set-ups for the standard items and 100 set-ups for the specialty items.

Inspecting Finished Goods cost is $8,000. All briefcases are inspected to ensure that quality standards are met. However, the final inspection of standard briefcases takes very little time because the employees identify and correct quality problems as they do the hand-cutting and stitching. A survey of the personnel responsible for inspecting the final products showed that they spent 150 hours on the standard briefcase and 250 hours on the specialty ones during the month.

Equipment Related costs are $6,000. Equipment related costs include repairs, depreciation and utilities. Management has determined that a logical basis for assigning these costs to products is machine hours. A standard briefcase requires ½ hour of machine time, and a specialty briefcase requires 2 hours. Thus, during the last month, 5,000 hours of machine time relate to the standard line and 5,000 hours relate to the specialty line. Plant Related costs are $13,000. Plant related costs include property taxes, insurance, administration and others. These costs are to be assigned to products using machine hours.

Required: a. Using activity-based costing concepts, what overhead costs are assigned to the two products?

b. What is the unit cost of the two products using activity-based costing concepts?

c. Reevaluate the President’s concern about the profitability of the two

A student wanted to know if how much money people spent per month on beer based on their income. Therefore, he asked 7 random people at Meijer their income and monthly beer spending. The following table includes the responses: Income Spent on Beer 1 17500 160 2 28000 130 3 50000 120 4 55000 125 5 65000 130 6 80000 80 7 100000 75 Mean 56500 117.1429 What is the regression equation what does the R2 coefficient of determination indicate? 32. Given a correlation coefficient (r) of 0.7216, mean of x-bar = 140.5, standard deviation of x (sx) = 6.4, mean of y-bar = 128.3, and standard deviation of y (sy) = 8.2. Find the slope of the regression line (2 pts). Find the y-intercept of the line

Each player throws both dice once per turn. The player only scores when the player throws doubles. Double-6 scores 25 points. A double-3 cancels out a player’s score and puts the score back to zero. Any double other than a 3 or 6 scores 5 points. Scores are recorded and the first player to obtain a total score of fifty points wins the game.

Write a MATLAB program to simulate the FIFTY dice game that can:

1. Play the FIFTY dice game automatically for one player using two dice.

2. Add your name, purpose, and copyright your program.

3. Clear command window and clear all variables.

4. Randomize the pseudorandom number generator with the MATLAB built-in rng function and provide ‘shuffle’ as the function input.

5. Create a variable that will keep the game score. Set the value of this variable to 0.

6. Create another variable that will count the round number. Set the value of this variable to 1.

7. Welcome the player and briefly explain how to play the game when the program starts.

8. Print the current round number in the command window.

9. Print the current game score in the command window.

10. Generate two random integers between 1 and 6 to represent the face values of two dice.

11. Print the two dice values in the command window.

12. If the value of the 1 st die and the 2nd die are not equivalent with each other: a. No action required. We can optionally display a message that no point will be added to the game score.

13. Else a. If the value of the first die is equivalent with 3: i. Display a message about rolling a double 3 causes the game score to set back to 0. ii. Set the game score to 0. b. Elseif the value of the first die is equivalent with 6: i. Display a message about rolling a double 6 adds 25 points to the game score. ii. Set the game score to game score plus 25. c. Else: i. Print a message about rolling the double dice adds 5 points to the game score. ii. Set the game score to game score plus 5. d. End.

14. End.

15. Increment the round number by 1.

16. The game should keep playing while the player’s game score is less than 50 points. Insert a while loop to wrap around the code generated from step 8 through step 15. Make the existing code generated from steps 8 through 15 the code block of this new while loop.

17. Congratulate the player and show the player’s final game score in the command window.

1. A company faces a choice between using straight line or accelerated depreciation in preparing the capital budget for a major expansion project. The project will last four years and require a $1.7 million investment in new equipment. Under the straight-line method, this expense would be spread evenly over the four-year life of the project. Applicable MACRS depreciation rates are 33.33%, 44.45%, 14.8%, and 7.41%. The company’s WACC is 10% and the tax rate is 40%.

1. What is the depreciation expense for each year under the two methods?

2. What is the NPV of the project under each method?

3. How would managers prefer to account for expenses if their bonus plan uses EPS to calculate bonus payouts?

You are a famous archaeologist/treasure hunter ́a la Indiana Jones. After following a treasure map you find yourself deep inside a Babylonian temple. As you reach the end of a long corridor you find it splits into two paths. Above the first path you make out some text carved into the rock. Shining your torch you manage to make out the following two inscriptions on the wall:

1. L1 ∧ T2
2. (L1 ∧T2)∨(L2 ∧T1)

Knowing that the Babylonians were great mathematicians, you’re not surprised to see that they had developed such a refined system of propositional logic centuries before it should have been. The historians of mathematics will surely want to hear of this discovery when you’re done!

Having no idea what these variables could mean however, you look down at your map to see if there are any hints. You notice scrawled in the margins of the map “L1: First Path Leads to Being Lost Forever”, “L2: Second Path Leads to Being Lost Forever”, “T1: First Path Leads To Treasure” and “T2: Second Path Leads To Treasure”.

Reading the first inscription you quickly translate the treasure is down the second path. However, as you’re about to step into the tunnel you remember something the map seller said as you were leaving his shop: “One tells the truth and the other is a lie!” You had thought that was cryptic nonsense at the time but thank goodness you remembered! He seemed like a trustworthy guy so you’ll assume that his statement was true and that one inscription is lying and the other is telling the truth.

Q: (20 points) Assuming the lying inscription is true and the truthful inscription is false leads to a contradiction. Prove this using the laws of propositional logic. First, combine the two statements into a single boolean expression (adding a ¬ to the expression that you’re assuming is false). Then proceed using the laws of propositional logic to arrive at “False”. You must show each step and identify which law you are applying. You must use the distributive law at least once; we are looking for you to demonstrate mastery over several laws rather than a quick solution.

1. The ultimate goal of HCI design is about usability. Describe what usability is and identify 5 factors to measure usability?
2. What is cognitive aide and what is the theory behind this? Give three examples to describe how cognitive aides are used in user interface design?
3. Design of an HCI element typically follows Norman’s seven stages of action. With an example. Briefly explain Norman’s seven stages action.
4. Metaphors are powerful designs if done properly. Explain the idea of a metaphor and give two examples of using metaphors in user interface design. What are the 3 advantages and 3 disadvantages of using metaphors?
5. Heuristic evaluation and cognitive walk through are commonly used for HCI design. Briefly explain how to conduct a heuristic evaluation and how to conduct cognitive walk through?