Assume firm A wants to borrow float while firm B wants to borrow fixed. Firm A is offered 10% fixed borrowing cost and LIBOR + 0.3% float borrowing cost while firm B is offered 11.2% fixed borrowing cost and LIBOR + 1% float borrowing cost.

(a) Show how the two firms can reduce their borrowing costs equally by entering into an interest rate plain vanilla swap? Use a table to demonstrate your solution

(b) If the agreed-upon notional amount is $100m (no need to know the swap tenor), how much each party annually pays the other in absolute amounts? (assume that the LIBOR = 5%).

Show your answer in a table

Oil from a specific type of marine microalgae can be converted into biodiesel that may serve as an alternate transportable fuel for automobiles and trucks. If lined ponds are used to grow the algae, the construction cost is $13 million and the M&O cost is estimated at $1.8 million per year. Alternatively, if long plastic tubes are used for growing the algae, the initial cost will be higher at $25 million, but less contamination will render the M&O cost lower at $0.3 million per year. At an interest rate of 15% per year and a 5-year project period, which system is better—ponds or tubes? Use a present worth analysis. The present worth of lined ponds is $ and that of plastic tubes is $ . are used to grow algae.

The accompanying data table show the percentage of tax returns filed electronically in a city from 2000 to 2009. Complete parts a through e below.

Year   Percentage
2000   25
2001   33
2002   37
2003   38
2004   48
2005   50
2006   55
2007   59
2008   62
2009   64

a) Forecast the percentage of tax returns that will be electronically filed for 2010 using exponential smoothing with alpha= 0.1.

​b) Calculate the MAD for the forecast in part a.

c) Forecast the percentage of tax returns that will be electronically filed for 2010 using exponential smoothing with trend adjustment. Set alpha= 0.3 and beta= 0.4.

​d) Calculate the MAD for the forecast in part c.

A 6 meter tall concrete column 40 cm square is supporting a 4 MN compressive load. The concrete has an elastic modulus of 30 GPa, compressive strength of 28 MPa, tensile strength of 3.5 MPa and Poisson’s Ratio 0.3. The concrete is reinforced by 16 #8 W40 axial rebar (200 GPa elastic modulus, 275 MPa compressive strength), spaced 8 cm apart on each side, 8 cm from the surface of the column.

What is the compressive stress on the column?

What is the axial modulus of the reinforced concrete column?

What is the axial deflection (change in length) of the column?

What is the transverse change in dimension (change in width)?

Will this column fail? Why?

A CSTR activated sludge system is being designed for the Fulton Fish Processing Plant. The flow is relatively small (0.25 mgd), but the wastewater is strong due to all of the fish waste (BOD5 = 4500 mg/L). Primary settling removes 20% of the BOD5. In order to discharge to the town sewer the BOD5 must be reduced to a concentration that is 95% of the influent. What is the Dimensions of the basin assuming a 3:1 L:W ratio. Also, what is the sludge production rate?

Design Parameters

θc = 10 days

X = 2100 mg VSS/L

MLVSS is 75% of MLSS

Aeration Basin = 20 ft deep

Yobs = 0.3 mg MLSS/mg BOD5

Recycle Ratio = 50%

a)An object of mass ?m rests on a horizontal frictionless surface. A constant horizontal force of magnitude ?F is applied to the object. This force produces an acceleration:

• always
• only if ?F is larger than the weight of the object
• only while the object suddenly changes from rest to motion
• only if ?F is increasing

choice A

b)Now let there be friction between the surface and the object. If the object has a mass of 10 kg, and ??μs = 0.4, and ??=0.3μk=0.3, how much force would be required to cause the object to move?

c)If this force is then applied continuously, how far will the object be displaced after 4.8 seconds?

d)How fast will it be going after pulling with the same force above for 4.8 seconds?

a) Your initial belief about stock A is that its future price cannot be predicted on the basis of existing public information. An insider comes forward claiming that the price will fall. You know the insider is not totally reliable and tells the truth with probability p=0.3. Use Bayes’ theorem to calculate the posterior probability that the stock price will fall, based on the insider’s evidence.A second insider, equally unreliable, comes forward and also claims that the price will fall. Assuming that the insiders are not colluding, what is your posterior probability of a price fall?  Based on your above answers, does the probability of future stock price depend on unreliable insiders? Would you expect this outcome? Explain your argument.

DataSpan, Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement. After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations.

Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months:

2. Evaluate the company’s performance over the last four months. (Indicate the effect of each trend by selecting "Favorable" or "Unfavorable" or "None" for no effect (i.e., zero variance).

3-a. (Month 5) Refer to the move time, process time, and so forth, given for month 4. Assume that in month 5 the move time, process time, and so forth, are the same as in month 4, except that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE.

3-b. (Month 6) Refer to the move time, process time, and so forth, given for month 4. Assume in month 6 that the move time, process time, and so forth, are again the same as in month 4, except that the company is able to completely eliminate both the queue time during production and the inspection time. Compute the new throughput time and MCE.

(Round your answers to 1 decimal place.)

You are given the sample mean and the population standard deviation. Use this information to construct the​ 90% and​ 95% confidence intervals for the population mean. Interpret the results and compare the widths of the confidence intervals. If​ convenient, use technology to construct the confidence intervals. A random sample of 60 home theater systems has a mean price of ​$118.00. Assume the population standard deviation is ​$19.60. Construct a​ 90% confidence interval for the population mean.

The​ 90% confidence interval is ​( nothing​, nothing​). ​(Round to two decimal places as​ needed.)

Construct a​ 95% confidence interval for the population mean.

The​ 95% confidence interval is ​( nothing​, nothing​). ​(Round to two decimal places as​ needed.)

Interpret the results. Choose the correct answer below

A. With​ 90% confidence, it can be said that the population mean price lies in the first interval. With​ 95% confidence, it can be said that the population mean price lies in the second interval. The​ 95% confidence interval is wider than the​ 90%.

B. With​ 90% confidence, it can be said that the sample mean price lies in the first interval. With​ 95% confidence, it can be said that the sample mean price lies in the second interval. The​ 95% confidence interval is wider than the​ 90%.

C. With​ 90% confidence, it can be said that the population mean price lies in the first interval. With​ 95% confidence, it can be said that the population mean price lies in the second interval. The​ 95% confidence interval is narrower than the​ 90%.

Do people eat more of a snack food when the food is labeled as low-fat? Do people pay attention to serving size? The answer may depend on whether the snack food is labelled low-fat and whether the label includes serving-size information. A study investigated these two questions using staff, grad students, and undergrad students at a large university as subjects.   
Subjects were asked to evaluate a pilot episode for an upcoming TV show at a theater on campus and were given a bag of granola from a respected campus restaurant. They were told to enjoy as much or as little of the granola as they wanted. Each granola bag had two labels: Twenty subjects were assigned to each treatment, and their granola bags were weighed at the end of the session to determine how much granola was eaten.

a) Is the study an observational study or an experiment? Specifically in this study (do not give general definitions),

what are the b) experimental units (abbreviated EU, also called individuals or subjects)

c) response variable and whether it is quantitative or categorical

d) How many factors were there and what were they?

e) How many treatments were there and what were they?

f) How many experimental units were in the study?