the chickens of the ornithes farm are processed when they are 20 weeks old. the distribution of their weights is normal with a mean of 3.8 lb. and a standard deviation of 0.6 lb. On your paper draw a normal curve for each situation and write what you typed in the calculator. Answer the following.
a. What proportion of chickens weigh less than 3 pounds? (Round to 4 decimal places.)
b. What proportion of chickens weigh between 3.5 and 4.5 pounds? (Round to 4 decimal places.)
c. What proportion of chickens weigh more than 5 pounds? (Round to 4 decimal places.)
d. 20 percent of the chickens have a weight below what value? (Round to 1 decimal place.)
e. If I randomly select 5 chickens, what is the probability that they have weights with a mean more than 4 pounds? (Round to 4 decimal places)
In: Statistics and Probability
|
Neon Corporation’s stock returns have a covariance with the market portfolio of .0455. The standard deviation of the returns on the market portfolio is 20 percent, and the expected market risk premium is 7.9 percent. The company has bonds outstanding with a total market value of $55.04 million and a yield to maturity of 6.9 percent. The company also has 4.54 million shares of common stock outstanding, each selling for $24. The company’s CEO considers the current debt–equity ratio optimal. The corporate tax rate is 40 percent, and Treasury bills currently yield 3.8 percent. The company is considering the purchase of additional equipment that would cost $42.04 million. The expected unlevered cash flows from the equipment are $11.84 million per year for five years. Purchasing the equipment will not change the risk level of the company. |
|
Calculate the NPV of the project. |
In: Finance
Plant Food Case
A garden center wishes to determine if there are in fact differences in the effect of three different brands of plant food on the growth of sunflowers and the rank of their effectiveness in promoting growth. To do so, they selected 15 sunflower seedlings at random from the greenhouse and fed 5 of the seedlings with Plant Food A, 5 with Plant Food B, and 5 with Plant Food C. The weekly growth of each seedling was measured in inches and is summarized below.
|
Plant Food A |
Plant Food B |
Plant Food C |
|
3.8 |
5.4 |
1.3 |
|
1.2 |
2.0 |
0.7 |
|
4.1 |
4.8 |
2.2 |
|
5.5 |
4.6 |
1.1 |
|
2.3 |
3.7 |
1.4 |
In: Statistics and Probability
Find the mean and standard deviation of the times and icicle lengths for the data on run 8903 in data data234.dat. Find the correlation between the two variables. Use these five numbers to find the equation of the regression line for predicting length from time. Use the same five numbers to find the equation of the regression line for predicting the time an icicle has been growing from its length. (Round your answers to three decimal places.)
| times x = | |
| times s = | |
| lengths x = | |
| lengths s = | |
| r = | |
| time = | + length |
| length = | + time |
time length 10 2.5 20 1.9 30 3.8 40 5.4 50 6.4 60 10.1 70 9.5 80 12.1 90 14.1 100 13.9 110 18.9 120 19.1 130 21.5 140 23.3 150 26.5 160 28.2 170 29.6 180 28.8
In: Math
A project will cost $1,000 today and will pay back $100 one year from today (t=1), $200 two years from today (t=2), $500 three years from today (t=3) and $1,000 four years from today (t=4). If the required rate of return is 7%, answer question Q1 to Q5.
Q1: What is the present value of the future cashflow?
a)1578.62
b)1439.19
c)1374.25
d)1664.83
Q2: What is the NPV of the project
a)439.19
b)1439.19
c)578.62
d)1374.25
Q3: What is the IRR of the project?
a)21.75%
b)15.39%
c)16.84%
d)19.77%
Q4: What is the payback period of the project?
a)3.5
b)3.2
c)3.8
d)4
Q5: How long is the Discounted Payback Period
a)3.28
b)3.42
c)4
d)2.77
In: Finance
J&R Construction Company is an international conglomerate with a real estate division that owns the right to erect an office building on a parcel of land in downtown Sacramento over the next year. This building would cost $35 million to construct. Due to low demand for office space in the downtown area, such a building is worth approximately $32.5 million today. If demand increases, the building would be worth $38 million a year from today. If demand decreases, the same office building would be worth only $30 million in a year. The company can borrow and lend at the risk-free annual effective rate of 3.8 percent. A local competitor in the real estate business has recently offered $816,000 for the right to build an office building on the land. What is the value of the office building today? Use the two-state model to value the real option.
In: Finance
Time Cash flow
0 -165,000
1 56,500
2 67,400
3 45,600
4 29,800
5 7,500
Suppose your firm is considering investing in Project K with the cash flows shown in the table. Assume that the required rate of return on projects of this risk class is 7.5 percent, and that the maximum allowable payback and discounted payback statistics for the project are 3.0 and 3.6 years, respectively. Which of the following statements is (are) correct?
(x) If you use the payback decision rule to evaluate this project then you accept the project since the payback period is 2.9 years.
(y) If you use the discounted payback decision rule to evaluate this project then you reject the project since the discounted payback period is 3.8 years. (z) The NPV of this project is more than $10,000. If you use the NPV decision rule to evaluate this project; then it should be accepted.
In: Finance
The equivalent synchronous impedance of a 25kVA,
400V
three-phase Y-connected synchronous generator is 0.05 + j1.6
ohm.
When the rated voltage was output under no load, the rated current
flowed by connecting the load.
Part a)
If the load power factor is 0.8, 1.0 lagging, and 0.8
lagging,
calculate the pull-up voltage, load angle, and voltage fluctuation
rate for each.
Ignore the magnetic saturation.
Part b)
If the power factor is 0.8, 1.0 lagging and 0.8 leading,
when the rated current flows through the generator at the rated
output voltage,
calculate the internal induced power, load angle, and voltage
dynamic for each.
Answer
Part a)
190.4V, 11.26 deg, 21.3%
221.8V, 14.47 deg, 4.1%
259.2V, 11.82 deg, -11.3%
Part b)
270.8V, 9.59 deg, 17.5%
239.8V, 13.93 deg, 3.8%
203.3V, 13.45 deg -12.0%
In: Electrical Engineering
Suppose we have two sets of prediction for the inflation rate for next year: one from a random sample of Fortune 500 firms and another from a random sample of university economists. At 0.05 level can it be claimed that on the average university educators are predicting a higher inflation rate for next year than the major private businesses?
|
Fortune 500 Firms |
4.3% |
3.8% |
6.0% |
4.4% |
5.1% |
5.6% |
4.2% |
6.1% |
4.5% |
4.0% |
|
University Economists |
4.4% |
5.9% |
7.0% |
5.1% |
5.9% |
7.2% |
6.3% |
Show the equation for computing the standard error.
In: Operations Management
Backcountry Adventures is a Colorado-based outdoor travel agent that operates a series of backcountry huts. Currently, the value of the firm is $3.8 million. But profits will depend on the amount of snowfall: If it is good year, the firm will be worth $5.2 million, and if it is a bad year it will be worth $2.5 million. Suppose managers always keep the debt to equity ratio of the firm at 30%, and the debt is riskless.
a. What is the initial amount of debt?
b. Calculate the percentage change in the value of the firm, its
equity and its debt once the level of snowfall is revealed, but
before the firm adjusts the debt level to achieve its target debt
to equity ratio.
c. Calculate the percentage change in the value of outstanding debt
once the firm adjusts to its target debt-equity ratio.
d. What does this imply about the riskiness of the firm's tax
shields. Explain.
In: Accounting