Romanos Construction is analyzing its capital expenditure proposals for the purchase of equipment in the coming year. The capital budget is limited to $8,000,000 for the year. Lyssa Bart​,

staff analyst at Romanos​, is preparing an analysis of the three projects under consideration by Chester Romanos​, the​ company's owner.

Requirement 1. Because the​ company's cash is​ limited, Romanos thinks the payback method should be used to choose between the capital budgeting projects.

Calculate the payback period for each of the three projects. Ignore income taxes. ​(Round your answers to two decimal​ places.)

Using the payback​ method, which​ project(s) should Romanos choose?

A construction crew wants to hoist a heavy beam so that it is standing up straight They tie a rope to the beam and secure its base (the bottom) Then they pull the rope to raise the top end of the beam off the ground. When the beam makes an angle of 40 degrees with the ground, the top of the beam is 8 feet above the ground There are telephone wires nearby and the workers are worried that the beam may hit the wires. When the beam makes an angle of 60 degrees with the ground, the wires are 2 feet above the top of the beam Will the beam hit the wires if the crew continues to raise it?

1. Coquitlam Builders is a medium size home construction company. It wants to test the hypothesis that the average size of a new home unit exceeds 2,400 square feet. A random sample of 36 newly constructed homes had a mean of 2,510 square feet. Assume that the standard deviation of the size for all newly constructed homes is 480 square feet. Toll Brothers would like to set α = 0.02. Using the confidence interval approach, what is the decision in this case?

5. The ticketing agency of the Vancouver Whitecaps football team would like to test the hypothesis that the average price of a ticket is less than $225 on the secondary market. A random sample of 40 customers paid an average of $207 for their ticket. Assume that the standard deviation of the price of tickets for Whitecaps games is $43. The Vancouver Whitecaps would like to set α = 0.01. Use the p value approach to test this hypothesis. What will be your decision? (3 points)

The Charming City Construction Company is considering six projects. The projects, the number of supervisors and the number of workers required for each project, and the expected profits for each project are given below.

Project

1 2 3 4 5 6

________________________________________________________________

Supervisors Required 5 4 6 3 4 2

Workers Required 15 24 35 22 26 32

Profit (in thousands of dollars) 210 290 330 240 300 200

The objective is to maximize the company's total expected profit subject to the following constraints:

- Use no more than 20 supervisors

- Use no more than 108 workers

- If project 4 is done, then project 2 must be done and vice versa

- At least four projects are to be done.

Formulate a capital budgeting integer optimization problem by defining

(a) The decision variables

(b) The objective function. What does it represent?

(c) All the constraints. What does each constraint represent?

You plan to invest $4 million in the construction of an oil well which has a potential revenue of $10 million. The oil well will be located in the Golf of Mexico. As we all know, this region is constantly hit by hurricanes. Assuming that if there is a hurricane of category 1 or 2, this will disrupt your production and the well will produce half its capacity, and if there is a category 3 or 4, your well will produce one fifth of its capacity, if there is a category 5 your well will be closed. In order to reduce the risk on your investment you plan to buy an insurance policy. One unit of this policy cost $1 and will pay $3 if the region is hit with a storm of category 1 or 2, $5 if the region is hit with a storm of category 3 or 4, and $7 if the region is hit by a storm of category 5. We know from the weather prediction that there is 20% chance that the region will be hit with a category 1 or 2 storm, 20% for a category 3, or 4, and 20% for a category 5, 40% chance that the region will not be hit.

1. What is the expected rate of return on your investment if you buy u units of this policy?

2. What is the variance of the rate of return on your investment if you buy u units of this policy?

3. What is the number of units that will minimize variance, and what is the corresponding rate of return?

A recent study examined the effects of carbon monoxide exposure on a group of construction workers. The following table presents the numbers of workers who reported various symptoms, along with the shift (morning,  evening,  or night) that they worked.

Test the hypothesis of independence. Use the

=α0.01

level of significance and the P-value method with the TI-84 Plus calculator. What do you conclude?

Part 1 of 4

Your Answer is correct

State the null and alternate hypotheses.

H0

: The shift and reported symptoms ▼are independent.

H1

: The shift and reported symptoms ▼are not independent.This hypothesis test is a ▼right-tailed test.

Part 2 of 4

Your Answer is correct

Find the P-value. Round your answer to four decimal places.

The P-value is

.0014

.

Alternate Answer:

0.0014

Your audit client is in the construction industry. As such, the company has numerous fixed asset additions during the year, as well as a material expense for equipment rental. In your planning phase of the audit, you discover from conversations with the audit client's accounting personnel that there appears to be a lack of understanding on the correct accounting treatment for capital leases versus operating leases for equipment. Based upon this information, what relevant assertion(s) for fixed assets should you as the auditor be concerned about? Explain.

A recent study examined the effects of carbon monoxide exposure on a group of construction workers. The following table presents the numbers of workers who reported various symptoms, along with the shift (morning,  evening,  or night) that they worked.

Test the hypothesis of independence. Use the a=0.10

level of significance and the P-value method with the TI-84 Plus calculator.What do you conclude?

Part 1 of 4

Your Answer is correct

State the null and alternate hypotheses.

H0: The shift and reported symptoms ▼are independent.

H1: The shift and reported symptoms ▼are not independent.This hypothesis test is a ▼right-tailed test.

Part: 1 / 4

1 of 4 Parts Complete

Part 2 of 4

Find the P-value. Round your answer to four decimal places.

A construction company is purchasing a new Tractor for over the road use. The IRS classifies this as 3-year property. The truck costs $280000.

a) Determine the depreciation allowance for each year using SLN method.

Year 1 $

Year 2 $

Year 3 $

Year 4 $

b) Determine the depreciation allowance for each year using DDB method.

Year 1 $

Year 2 $

Year 3 $

Year 4 $

c) Determine the depreciation allowance for each year using MACRS.

Year 1 $

Year 2 $

Year 3 $

Year 4 $

d) Using a 10% MARR calculate the present worth of the depreciation for each of the 3 methods above.

PWa = $

PWb = $

PWc = $

A construction company plans to invest in new equipment to improve their productivity. The planned investment is $500,000 now and $100,000 in year 1.   The gross income for year 1 is $175,000, year 2 is $300,000, and year 3 is $600,000. Taxes related to the investment are $50,000 in year 1, $75,000 in year 2 and $100,000 in year 3.

Determine:

1. The before tax rate of return for the investment
2. The after-tax rate of return for the investment
3. How does the after-tax rate of return compare to the company’s MARR of 15%?

SHOW WORK AND DONT USE EXCEL