1. Calculate the NPV for the following project if the firm's cost of capital is 8.2%.

A.   $274,698
B.   $342,130
C.   $384,956
D.   $196,999

2.Assuming that the cash flows are reinvested at the company's cost of capital, which is 6.8%, what is the Modified Internal Rate of Return (MIRR) for the following project?

A.   4.127%
B.   9.836%
C.   10.241%
D.   6.507%

3.Calculate the Payback Period for the following investment.

A. 2.875 years
B.   2.325 years
C.   3.625 years
D.   4.175 years

Ms. Tweeter is buying a house with a cost of $350,000. She will make a down payment of $20,000 on the house, and the rest will be paid for with a mortgage loan. Her mortgage loan has an APR of 4.9% compounded semi-annually, with a weekly payment schedule and a time horizon of 20 years. The first payment is due in one week's time. How much principal have you paid off after 5 years?

Global Internet company is looking to expand their operations. They are evaluating their cost of capital based on various financing options. Investment bankers informed them that they can issue new debt in the form of bonds at a cost of 8%, and issue new preferred stocks for the price of $25 per share paying $2.5 dividends per share. Their common stock is currently selling for $20 per share and will pay a dividend of $1.5 per share next year. They expect a growth rate in dividends of 5% per year, and their marginal tax rate is 35%.

1. If Global raises capital using 45% debt, 5% preferred stock, and 50% common stock what is their cost of capital?
2. If Global raises capital using 30% debt, 5% preferred stock, and 65% common stock what is their cost of capital?
3. Evaluate the two finance options and identify which one they should choose? Assess the advantages and disadvantages of your choice?

The YayForSemesterBreak Company wants to calculate the NPV and IRR on the following project: Cost is $17,800 today, with end-of-year cash flows of $8,000, $8,000, and $7,000, Years 1 through 3 respectively for three years. Assume the cost of capital is 8%. SHOW ALL WORK on the TI BAII Plus Calculator FOR FULL CREDIT. a) NPV? b) IRR? c) Do you accept or reject the project, and why?

our company is considering a machine that will cost $ 6,582 at Time 0 and which can be sold after 3 years for $ 231 . To operate the machine, $ 418 must be invested at Time 0 in inventories; these funds will be recovered when the machine is retired at the end of Year 3. The machine will produce sales revenues of $ 981 /year for 3 years; variable operating costs (excluding depreciation) will be 56 percent of sales. Operating cash inflows will begin 1 year from today (at Time 1). The machine is in the 3-year MACRS class. The MACRS class has depreciation of 33% in year 1, 45% in year 2, 15% in year 3, and 7% in year 4. The company has a 30 percent tax rate, enough taxable income from other assets to enable it to get a tax refund from this project if the project's income is negative, and a 10 percent cost of capital. Inflation is zero. What are the terminal cash flows associated with ending this project?

Note, I want only the Year 3 terminal cash flows, not the year 3 operating cash flows. Show your answer to the nearest $.01 Do not use the $ symbol in your answer.

The following table shows age distribution and location of a random sample of 166 buffalo in a national park.

Use a chi-square test to determine if age distribution and location are independent at the 0.05 level of significance.

(a) What is the level of significance?


State the null and alternate hypotheses.

H₀: Age distribution and location are independent.
H₁: Age distribution and location are not independent.H₀: Age distribution and location are not independent.
H₁: Age distribution and location are independent.    H₀: Age distribution and location are not independent.
H₁: Age distribution and location are not independent.H₀: Age distribution and location are independent.
H₁: Age distribution and location are independent.

(b) Find the value of the chi-square statistic for the sample. (Round the expected frequencies to at least three decimal places. Round the test statistic to three decimal places.)


Are all the expected frequencies greater than 5?

YesNo    

What sampling distribution will you use?

uniformbinomial    Student's tnormalchi-square

What are the degrees of freedom?


(c) Find or estimate the P-value of the sample test statistic. (Round your answer to three decimal places.)


(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis of independence?

Since the P-value > ?, we fail to reject the null hypothesis.Since the P-value > ?, we reject the null hypothesis.    Since the P-value ? ?, we reject the null hypothesis.Since the P-value ? ?, we fail to reject the null hypothesis.

(e) Interpret your conclusion in the context of the application.

At the 5% level of significance, there is sufficient evidence to conclude that age distribution and location are not independent.At the 5% level of significance, there is insufficient evidence to conclude that age distribution and location are not

Q1. Implementation of solar power in different applications is becoming popular and many opportunities are available for industries and other commercial establishments to adopt this technology. Impressed by this technology, a star hotel located in a remote beach of Oman is willing to use solar PV technologies for meeting 25 percentage of its daily average power requirement. It is also ready to have a battery backup system to store the entire energy obtained from solar panels. The balance power will be taken from the grid. The solar radiation may be assumed as 400 W/m2 for the region. The loads and their average working hours per day are given below.
Lights : 5 kW, 12 hours
Air conditioning systems : 4 numbers, each 30 kW, 12 hours
Refrigerator : 60 numbers, each 350 W, 10 hours
Cold Room : 12 kW, 24 hours
Kitchen equipment : 15 kW, 9 hours
Laundry equipment : 10 kW, 4 hours
Cleaning equipment : 2000 W, 8 hours
Lifts : 4 kW, 3 numbers, 5 hours
Swimming poor equipment : 6 kW, 4 hours
Water pumps : 3000 W, 2 numbers, 4 hours Fans and blowers : 4 kW, 6 hours

Based on the available data you are asked to analyze the situation and prepare a write-up to implement the PV technology for the specific application. The write-up is expected with various features like the plan for the suitable energy conversion system with all equipment, controls, storage and distribution system, a schematic diagram of the entire plan, provisions included to manage the power with the gird power, impacts of losses in various components, effective conversion of DC and AC power, specification of the battery storage system etc. Appropriate discussion is also expected to address the challenges involved in the implementation of this proposal and your valid suggestions to overcome those risks.   

he Mountain Top Resort Community is an elegant, thriving four-season resort and community of over 1,200 single family homes, 1,000 time-share units, and a multimillion-dollar ski business. Guests visiting the resort can enjoy the indoor/outdoor water park, play golf on one of the two 18-hole championship golf courses, ski, snowboard, or snow tube in the winter on 14 trails that are all lighted for night skiing, or relax at the full-service spa. There are also three dining rooms, card rooms, nightly movies, and live weekend entertainment. The resort uses a computerized system to make room reservations and bill customers. Following standard policy for the industry, the resort also offers authorized travel agents a 10% commission on room bookings. Each week, the resort prints an exception report of bookings made by unrecognized travel agents. However, the managers usually pay the commissions anyway, partly because they don’t want to anger the travel agencies and partly because the computer file that maintains the list of authorized agents is not kept up-to-date. Although management has not discovered it, several employees are exploiting these circumstances. As often as possible, they call the resort from outside phones, pose as travel agents, book rooms for friends and relatives, and collect the commissions. The incentive is obvious: rooms costing as little as $100 per day result in payments of $10 per day to the “travel agencies” that book them. The scam has been going on for years, and several guests now book their rooms exclusively through these employees, finding these people particularly courteous and helpful.

Requirements

Would you say this is a computer crime? Why or why not?

Is this fraud? Why or why not?

What internal controls would you recommend that would enable the resort’s managers to prevent such offenses?

Classify the controls that you just identified as either preventive, detective, or corrective controls.

How does the matter of “accountability” (tracing transactions to specific agencies) affect the problem?

What role does Robert play in the succession planning for the family business? What steps should he take?​

Power Play at the Inn

Fronting on the Pacific Ocean, the Inn at the Wharf boasts 410 guest rooms and suites, two dining rooms, a lobby bar, and the lively Gull's Nest nightclub. The inn's annual revenues are $15 million.

Robert May, 57, purchased and remodeled the inn in 1970. His wife Katherine, although not now active in the business, had assisted in decorating and menu design. They have three children: Jake, 35; Amy, 30; and Andy, 24.

Three years ago, Jake and his wife Elaine, wanting to settle down from their life as rock musicians and start a family, were welcomed back. Jake manages the Gull's Nest. Elaine, a stabilizing force for Jake, especially during the stress of on-the-road tours, is interested in using her art skills at the inn.

Business degree in hand, Amy took over office management five years ago, including computer operations, for the inn. She and her husband, who is not involved at the inn, have a son. Andy will soon receive his degree in hotel and restaurant management and expects to work at the inn upon graduation.

Today, Robert arrived home looking haggard. Questioning him, Katherine soon discovered that Amy had come into Robert's office and burst into tears. Jake had been through her office with an old buddy who represented a computer company and informed Amy that he was considering purchasing a new computer system for the inn. "And besides that, Dad, I'm pregnant again. Can I handle my job and two children?"

Robert called Jake to his office and inquired about the computer decision. Much to Robert's surprise, Jake pulled out his wallet and presented a new business card: "Jacob May, General Manager, Inn at the Wharf."