Suppose that Denver Financial Co. expects the exchange rate of the New Zealand dollar (NZ$) to appreciate from its current level of 0.5 to 0.55 in 30 days. Denver Financial seeks to capitalize on this potential opportunity.

Suppose that Denver Financial begins by borrowing $30,000,000 and converting it to New Zealand dollars (NZ$).

The following table shows the short-term interest rates (annualized) in the interbank market.

After exchanging $30,000,000 for New Zealand dollars, Denver Financial will have NZ $_______ (New Zealand dollars).

a.) $60,000,000

b.) $42,000,000

c.)$48,000,000

d.)54,000,000

Your company maintains a database with information on your customers, and you
are interested in analyzing patters observed over the past quarter. 23% of customer
in the database placed new orders within this period. However, for those customers
who had a salesperson assigned to them, the new order rate was 58%. Overall, 14%
of customers within the database had salesperson assigned to them.
a) Draw a contingency table for this situation.
b) What percentage of customers in the database placed a new order but did not
have a salesperson assigned to them.
c) Given that a customer did not place a new order, what is the probability that the
customer had a salesperson assigned to him or her?
d) If a customer did not have a salesperson assigned to him or her, what is the
probability that the customer placed a new order?

An automotive manufacturer wants to know the proportion of new car buyers who prefer foreign cars over domestic.

Step 1: Suppose a sample of 2851 new car buyers is drawn. Of those sampled, 684 preferred foreign over domestic cars. Using the data, estimate the proportion of new car buyers who prefer foreign cars. Enter your answer as a fraction or a decimal number rounded to three decimal places.

Step 2: Suppose a sample of 28512851 new car buyers is drawn. Of those sampled, 684684 preferred foreign over domestic cars. Using the data, construct the 98%98% confidence interval for the population proportion of new car buyers who prefer foreign cars over domestic cars. Round your answers to three decimal places.

Linkin Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company's current truck (not the least of which is that it runs). The new truck would cost $56,980. Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of $7,700. At the end of the 8 years, the company will sell the truck for an estimated $27,600. Traditionally the company has used a rule of thumb that a proposal should not be accepted unless it has a payback period that is less than 50% of the assets estimated useful life. Larry Newton, a new manager has suggested that the company should not rely solely on the payback approach, but should also employ the net present value method when evaluating new projects. The company's cost of capital is 8%

Chapter 12 Question 3:

The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $50,000. The machine would replace an old piece of equipment that costs $13,000 per year to operate. The new machine would cost $6,000 per year to operate. The old machine currently in use could be sold now for a salvage value of $20,000. The new machine would have a useful life of 10 years with no salvage value.

Required:

1. What is the annual depreciation expense associated with the new bottling machine?

2. What is the annual incremental net operating income provided by the new bottling machine?

3. What is the amount of the initial investment associated with this project that should be used for calculating the simple rate of return?

4. What is the simple rate of return on the new bottling machine?

There is a new outbreak called pink ear; people who contract the disease become totally deaf in a matter of weeks. A vaccination has been created. Health officials have determined that pink ear can be prevented from spreading across the nation and becoming a pandemic issue if laws are put into place to ensure every child under the age of five is vaccinated.

Address the items below and explain how the public health policy process works. Evaluate public health policy effectiveness.

1. Which branch is responsible for making the new law?
2. Which branch is responsible for interpreting the new law?
3. Which branch is responsible for carrying out the new law?
4. Which branch has the most power?
5. What role will healthcare administrators have in the new law?

A manufacturer of small engines concerned with the issue of noise pollution developed a new engine that would, it was hoped, be quieter than the standard model. Forty-one of the new models were tested for noise level and compared with 65 of the standard models. The results are given below with noise measured in decibels. (The higher the decibel is, the higher the noise level is ). Assume that the noise levels of both the standard and the new model engines are normally distributed.

At 5 % level of significance, test the claim (using test of hypothesis procedure) that the new model is significantly quieter than the old model. Use P-value method. Show all four steps and showcompletework. UseP-ValueMethod.

The RW Company is proposing to replace its old welt-making machinery with more modern equipment. The new equipment costs $9 million (the existing equipment has zero salvage value). The attraction of the new machinery is that it is expected to cut manufacturing costs from their current level of $8 a welt to $4. However, as the following table shows, there is some uncertainty both about future sales and about the performance of the new machinery:

Calculate the annual cost savings of the expected scenario. Assume a discount rate of 12%. RW does not pay taxes.