After 3 months on the job, you have now been tasked to provide an investment recommendation to the Board of Directors of UCW. Currently, UCW is looking to lease an additional 2,000 square feet in Vancouver House. Assume that it currently has 10,000 square feet under lease and that the additional potential space is located on the 1st floor. Zoning for this space provides for multiple potential uses, including retail, restaurants and education.
You are to propose a recommendation to lease the 2000 square foot space. What would you use use it for and would it provide a positive return on investment?
In your analysis, use the knowledge gained in this course, including the concepts introduced on CVP, incremental and capital budgeting techniques. Highlight the key inputs and the basis for the assumptions/ estimates in arriving to your conclusion. You may identify any factors that you believe would contribute to your analysis and use external sources from industry to put together estimates. If a tax rate is needed, for example, provide a reasonable estimate. Market research on lease rates, etc.. while not specifically required, will contribute to the quality of the analysis.
Please include an executive summary, analysis with any spreadsheets, conclusion and a summary/ list of assumptions made.

A nearby park is comprised of 15% pine, 20% elm, 30% alder and 35% cedar. In the spring, the surrounding city is flooded with pollen. You wonder whether these four tree species contribute proportionally to the total pollen count.

Using air traps, you collect pollen samples. After mixing them, you separate out 1000 pollen granules and identify them by species. Here are the data:

The question of interest is whether the tree species contribute proportionally to pollen count.

Step 2: State the null hypothesis.

Step 3: State the alternative hypothesis.

Step 4: What is the correct level of alpha?

Step 5: Which statistical test are you using?

Step 6: What is the value of the test statistic?

Step 6 continued: How many degrees of freedom in this test?

Step 7: What is the critical value for the test statistic?

Step 8: How does the test statistic compare to the critical value?

Step 9: Based on this comparison, do you accept or reject your null hypothesis?

Step 10: What do you conclude from this analysis?

One state lottery game has contestants select 5 different numbers from 1 to 45. The prize if all numbers are matched is 2 million dollars.   The tickets are $2 each.

1)    How many different ticket possibilities are there?

2)

One state lottery game has contestants select 5 different numbers from 1 to 45. The prize if all numbers are matched is 2 million dollars.   The tickets are $2 each.

1)    How many different ticket possibilities are there?

2)    If a person purchases one ticket, what is the probability of winning? What is the probability of losing?

3)    Occasionally, you will hear of a group of people going in together to purchase a large amount of tickets. Suppose a group of 30 purchases 6,000 tickets.

a)    How much would each person have to contribute?

b)    What is the probability of the group winning? Losing?

   If a person purchases one ticket, what is the probability of winning? What is the probability of losing?

3)    Occasionally, you will hear of a group of people going in together to purchase a large amount of tickets. Suppose a group of 30 purchases 6,000 tickets.

a)    How much would each person have to contribute?

b)    What is the probability of the group winning? Losing?

1. Determine the sample size to survey the customers of a store in a mall, if there are 500 customers out of 11,000 that are in the stores of the corporation. Assume that the confidence level is 95% and the accepted margin of error is 0.05.

2. Determine the sample size from the previous exercise, assuming that the customer sample was taken from department stores where there are a total of 200 customers.

A bank wonders whether omitting the annual credit card fee for customers who charge at leats $2500 in a year will increase the amount charged on its credit cards. The bank makes this offer to an SRS of 200 of its credit card customers. It then compares how much these customers charge this year with the amount that they charged last year. The mean increase in the sample is $346, and the standard deviation is $112. Give a 99% confidence interval for the mean amount charges would have incremented if this benefit had been extended to all such customers.
Z* for 99% confidence is 2.58.

ESLA manufactures solar engines for tractor-trailers. Given the fuel savings available, new orders for 105 units have been made by customers requesting credit. The variable cost is $8,400 per unit, and the credit price is $10,250 each. Credit is extended for one period. The required return is 1.2 percent per period. If TESLA extends credit, it expects that 20 percent of the customers will be repeat customers and place the same order every period forever and the remaining customers will be one-time orders.

Grunewald Industries sells on terms of 3/10, net 60. Gross sales last year were $4,916,500 and accounts receivable averaged $480,500. Half of Grunewald's customers paid on the 10th day and took discounts. What are the nominal and effective costs of trade credit to Grunewald's nondiscount customers? (Hint: Calculate daily sales based on a 365-day year, calculate the average receivables for discount customers, and then find the DSO for the nondiscount customers.) Do not round intermediate calculations. Round your answers to two decimal places.

Nominal cost=

Effective cost=

Grunewald Industries sells on terms of 1/10, net 30. Gross sales last year were $4,342,000 and accounts receivable averaged $475,000. Half of Grunewald's customers paid on the 10th day and took discounts. What are the nominal and effective costs of trade credit to Grunewald's nondiscount customers? (Hint: Calculate daily sales based on a 365-day year, calculate the average receivables for discount customers, and then find the DSO for the nondiscount customers.) Do not round intermediate calculations. Round your answers to two decimal places.