Prist Co. had not provided a warranty on its products, but competitive pressures forced management to add this feature at the beginning of 2019. Based on an analysis of customer complaints made over the past two years, the cost of a warranty program was estimated at 0.2% of sales. During 2019, sales totaled $4,000,000. Actual costs of servicing products under warranty totaled $21,400. Required:a-1. Use the horizontal model to show the effect of having the warranty program during 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)

Listed below are yearly forecasts of “free cash flow” (operating cash flow plus investment-related cash flow) for Tomkat LLC.

Year Cash Flow

2020 -$2.8 million.

2021 -$2.0 million.

2022 -$1.2 million.

2023 -$0.2 million.

2024 $0.9 million.

2025 $2.2 million.

After year 2025, cash flows are anticipated to grow by 3% per year, in perpetuity. For simplicity, assume all that cash flows occur at the end of each year. Assume a discount rate of 8% per year.

What is the value of Tomkat LLC as of the end of 2019?

1. Consider the initial value problem y′ =1+y/t, y(1)=3 for1≤t≤2.

• Show that y(t) = t ln t + 3t is the solution to the initial value problem.

• Write a program that implements Euler’s method and the 4th order Runke-Kutta method for the above initial value problem. Use your program to solve with h = 0.1 for Euler’s and h = 0.2 for R-K.

• Include a printout of your code and a printout of the results at each time step.

• Use Taylor’s method to compute w1 with h = 0.1 for orders 1 through 4.

1. What is the standard deviation and mean returns for an equal weighted portfolio that consists stocks X,Y,Z(equally weighted). Use the data given below.

2. A bond has a face value of $1000 with a time to maturity ten years from now. The yield to maturity of the bond now is 10%.  What is the price today if pays 8% coupon rate semi-annually?

Mass of dry soil in a metal sampling ring = 77g

Volume of sampling ring = 59cm3

Question 1: What is the Soil Bulk Density?

Given

A contaminant is present on a 1 hectare area down to 10 cm

Question 2: Using the bulk density calculated above, figure the dry weight of soil present over the contaminated area

Given

It rains before you are able to excavate the contaminated soil. The volumetric water content is measured to be 0.2 (20%)

Question 3: How many liters of water is present in the contaminated soil volume? How much does this water weigh?

One random sample of the hours of one type of user watch TV per day was recorded: 2.9, 3.5, 3, 3.2, 3.3, 3.5, 3.3, 3, 3.5.

1. Apply the backward empirical rule to check normality of the data, and conclude if any evidence of non-normality.

2. Assume that the underlying population is normal. Find a two-sided 99% confidence interval for the the true population average hours.

3. Assume that population variance ?2=0.09σ2=0.09 and the bound on the error of estimation of 99% confident interval to be 0.2. Find the minimum sample size ?n.

A large stream with a velocity of 0.85 m/s, saturated with oxygen, has a reoxygenation constant k2 = 0.4 day−1 and a temperature of T = 12oC, with an ultimate BOD = 13.6 mg/L and a flow rate Q = 2.2 m3 /s. Into this stream flows a wastewater stream with a flow rate of 0.5 m3/s, T = 26oC, L = 220 mg/L and oxygen level = 1.5 mg/L. Downstream the deoxygenation constant is k1 = 0.2 day−1 .

a) What is the dissolved oxygen 48.3 km downstream?

b) What will be the minimum dissolved oxygen? And at what distance from the outfall?

The Gap is considering 3 options for managing its data processing operations: continue with its own staff, hire an outside vendor to do the managing (outsourcing), or use a combination of its own staff and an outside vendor. The cost of operation depends on future processing demand.

(e) Suppose the probability demand will be high is 0.2 but the other probabilities are unknown. Determine the range of the probability of the demand being medium for which it is best for the GAP to outsource.

Q84

A private health-care clinic has been offered a leasing deal where it could lease a CAT scanner at a fixed charge of $2,000 per month and a charge per patient of $6 per patient scanned. The clinic currently charges $10 per patient for taking a scan. (a) At what level of demand (in number of patients per week) will the clinic break even on the cost of leasing the CAT scan? (b) Would a revised lease that stipulated a fixed cost of $3,000 per week and a variable cost of $0.2 per patient be a better deal? [3 Marks]