R Assignment 2

   Below are the average starting teacher salaries for the 50 states in the US along with District of Columbia and Federal Education Association for year 2016-2017.

Construct a histogram. Label the horizontal axis and give histogram a heading. Describe

the shape of the distribution for your histogram.

You are trying to decide whether to bid on a construction contract for a new bridge in South Carolina. You think that it will take 36 months to build and that construction costs will be $2 million per month. You expect tolls to be $10 million per year once the bridge opens, which will be offset by toll collection and maintenance costs of $2 million per year. Your (minimally acceptable rate of return) MARR is 15% per year. To bid on the project, you specify the price you are willing to pay to the state (in cash, at time 0) for the right to build the bridge and operate it for a period of 30 years. At the end of 30 years, the ownership and operation of the bridge revert to the state of South Carolina.

a. You can obtain a construction line of credit at 10% per year that can be used to cover all the construction expenses plus all of the accrued interest. What will be the outstanding balance when the bridge is completed?

b. Once the bridge is open, you will have a steady stream of income, so that you can refinance the construction loan at a lower interest rate, say 8% per year, and pay off the loan in 30 years. What will the annual payments be on this loan?

c. What is the cash flow (toll revenue minus payments on your loan) from operating the bridge worth to you at the end of month 30 when the bridge opens?

d. What are you willing to bid for the bridge?

3. Find the data female and male life expectancy for the 13 richest and 14 poorest countries on earth.

Test whether there is a difference of variances between male life expectancy of richest and poorest countries.

Test whether there is a difference of variances between female life expectancy of richest and poorest countries.

Problem 3-6 Financial Statements (LO1,4)

South Sea Baubles has the following (incomplete) balance sheet and income statement.

a&b. What is shareholders’ equity in 2015 and 2016? (Enter your answers in millions.)

c&d. What is net working capital in 2015 and 2016? (Enter your answers in millions.)

e. What are taxes paid in 2016? Assume the firm pays taxes equal to 35% of taxable income. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

f. What is cash provided by operations during 2016? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

g. Net fixed assets increased from $900 million to $1,000 million during 2016. What must have been South Sea’s gross investment in fixed assets during 2016? (Enter your answer in millions.)

Write a function that accepts a dictionary and produces a sorted list of tuples

The dictionary looks like this:

{‘US’: [{'Chicago, IL': ('2/1/2020 19:43', 2, 0, 0)}, {'San Benito, CA': ('2/3/2020 3:53', 2, 0, 0)}, {'Santa Clara, CA': ('2/3/2020 0:43', 2, 0, 0)}, {'Boston, MA': ('2/1/2020 19:43', 1, 0, 0)}, {'Los Angeles, CA': ('2/1/2020 19:53', 1, 0, 0)}, {'Orange, CA': ('2/1/2020 19:53', 1, 0, 0)}, {'Seattle, WA': ('2/1/2020 19:43', 1, 0, 0)}, {'Tempe, AZ': ('2/1/2020 19:43', 1, 0, 0)}], 'Australia' : [{'New South Wales': ('2/1/2020 18:12', 4, 0, 2)}, {'Victoria': ('2/1/2020 18:12', 4, 0, 0)}, {'Queensland': ('2/4/2020 16:53', 3, 0, 0)}, {'South Australia': ('2/2/2020 22:33', 2, 0, 0)}]

For these counts, I need to use the numbers that are bolded above). The returned sorted list (in descending order) will contain key-value pairs such that each key is a country and the corresponding value is the number of cases observed within that country.

For example: [('Australia', 13),(‘US’: 11)]

Question 6 (Corporate Strategy & Development): You are consulting to a growing company with a profitable South African business based off its core product. It faces the following choices: i. Competition in its core market is beginning to intensify. It needs to protect its market leadership position and its margins which are under pressure. ii. They say offence is the best defence. The company has employed this approach to develop a new product which is adjacent to its current offering. The product is not market leader but has been doing well and is growing faster than the core business at present. It needs further funding in terms of marketing and promotion iii. There is significant opportunity in growing other African markets. A major partner has already done most of the groundwork for introducing the core product to new markets that could vastly increase the revenues and profitability of the business. Of course, there is some risk to consider. iv. The company was part of a government initiative that has recently ended. The government allowed it to keep the associated intellectual property as it has no relevance in the South African market. This technology can however be exploited to create new products in a neighbouring market and some reputable partners have expressed interest. The Questions: a. How should the business think about taking advantage of the above opportunities? b. What deliberate and emergent features could be deployed by the organisation to manage their strategy process going forward?

Part #1: The Caribbean Club The Caribbean Club is one of the Virgin’s Islands/ hottest night spots. It’s a great place for locals to meet after work and relax with friends. It’s a popular destination for tourists why stay on the island, and it’s always on the list of fun entertainment choices for the crowds from the cruise ships that dock in the harbor. The reason the Club is so popular with such a variety of customers is because the founder of the club, Ross Stewart, always has such innovative and visionary ideas that delight the patrons. For example, every night of the week the Club features different activities or shows, including beach volleyball, Caribbean shows with calypso singers, would-class musicians who play steel drums, and other island entertainment. Since Ross was a former accountant and auditor with one of the largest public accounting firms in New Zealand, he is very accustomed to brainstorming sessions to generate ideas and surface concerns. He bought this practice with him to the Caribbean and holds brainstorming sessions with his “club associates” (Which is what he called all of the employees at the club) once every month to identify new and novel ideas to increase the popularity and profitability of the club. As you might imagine, the patrons of a night club are there to relax and enjoy themselves. So, the associates thought it would be great idea to somehow be able to recognize their regular patrons so that they wouldn’t have to trouble them with a bill every time a server came to their table with another round of drinks. After all, if the club wanted these people to “feel like they were at home with friends”, the patrons shouldn’t have to bother with trying to decide who owed what to pay the bill. So, Ross and his associated came up with the idea to implant their regular customers with an implantable microchip. The idea was to make the chip “fun”- to give an elite status so that their regular patrons would want to be implanted. To dramatize the elite status of the chip, Ross decided that the Club would have a special area where only those with chips. The “VIPs”, would be admitted. And of course, this area would have various exclusive services for these members. The chip would allow the VIPs to be recognized and to be able to pay for their food and drinks without any ID-they would simply pass by a reader and the Club would know who they are and their credit balance. Ross also wanted the information system supporting the chip to be a customer relationship management tool. Answer the following questions: 1. What do you think of this idea? What are the advantages and disadvantages of this idea for the Caribbean Club? 2. What are the advantages and disadvantages for the patrons? 3. If you were a passenger on a cruise ship, or staying at a resort on the island, would you get the chip implanted? Why or why not?

Part #2: Vertical Markets and Accounting Information Needs • There are many vertical markets industries apart from industries discussed in chapter 11. Identify two additional vertical markets industries and explain what are the unique characteristics of these industries that affect their AISs?

1.Co-payments, as opposed to deductibles, and coverage only or primarily from a restricted network of health care providers is commonly associated with

2. Auto and homeowner's insurance generally provide complete payments for the losses they decide, after the _________ is met by the policyholder.

a.

co-payment

b.

co-insurance

c.

mutual fund payment

d.

entry fee

e.

deductible

3. The Principle of Indemnity states that insurance coverage

a.

should not be renewed after an adverse event occurs.

b.

should not be renewed at the same premium after an adverse event occurs.

c.

should be equal at all times to 80% of the loss or expense.

d.

should not be less than 100% of the loss or expense.

e.

should not be greater than 100% of the loss or expense.

Note: The following information is common to the two Pwasato Co. questions.

An analyst is in the process of estimating the market value of Pwasato Co. Based on his analysis of the company’s financials, he estimates the company’s free cash flow for the current year to be $90.50 million. Since Pwasato Co. has just launched a well-received product, the analyst believes that the company’s FCFs will increase by 30% per year for the next 3 years. After the third year, he expects the company’s FCF growth rate to decline steadily until it stabilizes at 3% per year 7 years later. The company’s WACC is 16%.

Question: What is the company’s horizon value? Report your answer in millions of dollars to two decimal places. Do not round numbers in intermediate steps.

Question: What is the company’s value of operations? Report your answer in millions of dollars to two decimal places. Do not round numbers in intermediate steps.

Co. is considering purchasing a piece of equipment costing $300,000. It has a useful life of 3 years and will be depreciated straight-line to zero, after which it will be scrapped for $20,000. This piece of equipment will save Teer Co. $125,000 per year in pretax operating costs during its useful life but requires an initial investment in NWC of $50,000. Teer Co. has a 20% tax rate and a required rate of return of 10%.

What is the annual Operating Cash Flow (OCF) of this piece of equipment in Years 1-3?

A.) 170k

B.) 149k

C.) 98k

D.) 120k

What is the Year 3 IATCF (Investment After-Tax Cash Flow)? Hint: You need to account for the after-tax salvage value and for net working capital.

A.) 142k

B.) 186k

C.) 171k

D.) 204k

What is the NPV of purchasing this piece of equipment?

A.)-$1991

B.)$2874

C.)$4096

D.) -$3984