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fixtures, and the walls and ceiling are painted a medium green.

The assembly benches are a dark


Explain how a proper work surface height would be determined.

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What is the combined noise level of two sounds of 86 and 96 decibels?

What factors affect the quantity of light that is needed to perform a task satisfactorily?

Describe the progression of the disease state for carpal tunnel syndrome.

The following are data on two different control response set ups. Based on this data, what is the
optimum CR ratio for each set up? Which set up would you recommend as best?

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Which type of radiation is given the most attention by the safety engineer?

The worker shown below is using a 10-lb pneumatic nut runner to tighten nuts within a tractor
cab compartment. What health and safety problems are likely to result from her job? Evaluate the
job and the workstation identifying both good and bad work design features. If good, indicate the
principles of work design that

Why is a fixed-scale, moving-pointer display preferred?

Are there possible health hazards in conjunction with electron beam machining? With laser beam
machining? Explain.

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A field worker in Florida is loading orange crates into trucks. It is quite hot and humid with wet
bulb temperature = 82?F, globe temperature = 87?F, and dry bulb temperature = 82?F. It is
estimated that each lift of the 30 lb box requires 0.67 kcal of energy. He is expected to load 10
boxes/min. What is the WBGT? What

What is the purpose of using patterns for a set of dials in a control room?

What is the principle behind the design of a saddle seat?

When would you advocate that the company purchase aluminized clothing?

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What is a fixture so important in workplace? List as many reasons as possible.

What is control movement without system response known as?

What is the increase in dBs of a noise that doubles in intensity?

What are the key concerns in the design of a power tool?

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What is the main disadvantage of tactile controls?

You are asked to design a control/display panel for above NASA escape launch. After the initial
escape, propulsion is used to decelerate against the earth's gravitational field. The parachute can
only be released within a given, narrow altitude range. Arrange the seven displays/controls, using
the same size dials as sh

A current problem in the U.S. Army is the neck/shoulder fatigue experienced by helicopter
pilots. To be able to fly missions at night, the pilots wear night vision goggles, which are
attached to the front of the helmet. Unfortunately, these are fairly heavy, causing a large
downward torque of the head, which must be co

List at least four different formulas for calculating PV(horizon value) in a two-stage DCF
valuation of a business. For each formula, describe a situation where that formula would be the
best choice.

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Sometimes real rates of return are calculated by subtracting the rate of inflation from the nominal
rate. This rule of thumb is a good approximation if the inflation rate is low. How big is the error
from using this rule of thumb to calculate real rates of return in the followingcases?

Answer this question by drawing graphs like Figure. Casper Milk toast has $200,000 available to
support consumption in periods 0 (now) and 1 (next year). He wants to consume exactly the
same amount in each period. The interest rate is 8 percent. There is no risk. a. How much should
he invest, and how much can he consu

Recalculate the NPV of the office building venture in Section 3.1 at interest rates of 5, 10, and 15
percent. Plot the points on a graph with NPV on the vertical axis and the discount rates on the
horizontal axis. At what discount rate (approximately) would the project have zero NPV? Check
your answer.

How much louder is an 80 dB noise than a 60 dB noise?

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A factory costs $800,000. You reckon that it will produce an inflow after operating costs of
$170,000 a year for 10 years. If the opportunity cost of capital is 14 percent, what is the net
present value of the factory? What will the factory be worth at the end of five years?
In Section 2.1, we analyzed the possible construction of an office building on a plot of land
appraised at $50,000. We concluded that this investment had a positive NPV of $7,143 at a
discount rate of 12 percent. Suppose E. Coli Associates, a firm of genetic engineers, offers to
purchase the land for $60,000, $30,000 p

Mrs. T. Potts, the treasurer of Ideal China, has a problem. The company has just ordered a new
kiln for $400,000. Of this sum, $50,000 is described by the supplier as an installation cost. Mrs.
Potts does not know whether the Internal Revenue Service (IRS) will permit the company to treat
this cost as a tax-deductible

Look again at projects A, B, C, and D in Section 5.4. How would the linear programming setup
change if? a. Cash not invested at date 0 could be invested at an interest rate r and used at date 1.
b. Cash is not the only scarce resource. For example, there may not be enough people in the
engineering department to compl

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Here are two useful rules of thumb. The “Rule of 72” says that with discrete compounding
the time it takes for an investment to double in value is roughly 72/interest rate (in percent). The
“Rule of 69” says that with continuous compounding the time that it takes to double is
exactly 69.3/interest rate (in perc

You have just read an advertisement stating, “Pay us $100 a year for 10 years and we will pay
you $100 a year thereafter in perpetuity.” If this is a fair deal, what is the rate of interest?

Consider the following statement: “We like to do all our capital budgeting calculations in real
terms. It saves making any forecasts of the inflation rate.” Discuss briefly.

Vernal Pool, a self-employed herpetologist, wants to put aside a fixed fraction of her annual
income as savings for retirement. Ms. Pool is now 40 years old and makes $40,000 a year. She
expects her income to increase by 2 percentage points over inflation (e.g., 4 percent inflation
means a 6 percent increase in income)

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A parcel of land costs $500,000. For an additional $800,000 you can build a motel on the
property. The land and motel should be worth $1,500,000 next year. Suppose that common
stocks with the same risk as this investment offer a 10 percent expected return. Would you
construct the motel? Why or why not?

Mr. Cyrus Clops, the president of Giant Enterprises, has to make a choice between two possible
investments: The opportunity cost of capital is 9 percent. Mr. Clops is tempted to take B, which
has the higher IRR. a. Explain to Mr. Clops why this is not the correct procedure. b. Show him
how to adapt the IRR rule to
For an investment of $1,000 today, the Tiburon Finance Company is offering to pay you $1,600
at the end of 8 years. What is the annually compounded rate of interest? What is the continuously
compounded rate of interest?

You own an oil pipeline which will generate a $2 million cash return over the coming year. The
pipeline’s operating costs are negligible, and it is expected to last for a very long time.
Unfortunately, the volume of oil shipped is declining, and cash flows are expected to decline by
4 percent per year. The discount r

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Look again at projects E and F in Section 5.3. Assume that the projects are mutually exclusive
and that the opportunity cost of capital is 10 percent. a. Calculate the profitability index for each
project. b. Show how the profitability-index rule can be used to select the superior project.

Portfolio managers are frequently paid a proportion of the funds under management. Suppose
you manage a $100 million equity portfolio offering a dividend yield (DIV1/P0) of 5 percent.
Dividends and portfolio value are expected to grow at a constant rate. Your annual fee for
managing this portfolio is .5 percent of port

Harold Filbert is 30 years of age and his salary next year will be $20,000. Harold forecasts that
his salary will increase at a steady rate of 5 percent per annum until his retirement at age 60. a. If
the discount rate is 8 percent, what is the PV of these future salary payments? b. If Harold saves
5 percent of his s

In 1983 wealthy investors were offered a scheme that would allow them to postpone taxes. The
scheme involved a debt-financed purchase of a fleet of beer delivery trucks, which were then
leased to a local distributor. The cash flows were as follows: Calculate the approximate IRRs. Is
the project attractive at a 14 per

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James and Helen Turnip are saving to buy a boat at the end of five years. If the boat costs
$20,000 and they can earn 10 percent a year on their savings, how much do they need to put
aside at the end of years 1 through 5?

Draw a figure like Figure 2.1 to represent the following situation. a. A firm starts out with $10
million in cash. b. The rate of interest r is 10 percent. c. To maximize NPV the firm invests today
$6 million in real assets. This leaves $4 million which can be paid out to the shareholders. d. The
NPV of the investm

In 1898 Simon North announced plans to construct a funeral home on land he owned and rented
out as a storage area for railway carts. (A local newspaper commended Mr. North for not putting
the cart before the hearse.) Rental income from the site barely covered real estate taxes, but the
site was valued at $45,000. Howev

Consider the following projects: a. If the opportunity cost of capital is 10 percent, which projects
have a positive NPV? b. Calculate the payback period for each project. c. Which project(s)
would a firm using the payback rule accept if the cutoff period were threeyears?

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Look again at Tables 4.3 (Growth-Tech) and 4.7 (Concatenator Manufacturing). Note the
discontinuous increases in dividends and free cash flow when asset growth slows down. Now
look at your answer to Practice Question 11: Dividends are expected to grow smoothly, although
at a lower rate after year 3. Is there an error o

Halcyon Lines is considering the purchase of a new bulk carrier for $8 million. The forecasted
revenues are $5 million a year and operating costs are $4 million. A major refit costing $2
million will be required after both the fifth and tenth years. After 15 years, the ship is expected to
be sold for scrap at $1.5 mill

Calculate the NPV and rate of return for each of the following investments. The opportunity cost
of capital is 20 percent for all four investments. a. Which investment is most valuable? b.
Suppose each investment would require use of the same parcel of land. Therefore you can take
only one. Whichone?

Restate the net cash flows in Table 6.6 in real terms. Discount the restated cash flows at a real
discount rate. Assume a 20 percent nominal rate and 10 percent expected inflation. NPV should
be unchanged at +3,802, or $3,802,000.

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Which would you prefer? a. An investment paying interest of 12 percent compounded annually.
b. An investment paying interest of 11.7 percent compounded semiannually. c. An investment
paying 11.5 percent compounded continuously. Work out the value of each of these investments
after 1, 5, and 20 years.

Construct a series of cash flows with no IRR.

Use the discount factors shown in Appendix Table 1 at the end of the book to calculate the PV of
$100 received in: a. Year 10 (at a discount rate of 1 percent). b. Year 10 (at a discount rate of 13
percent). c. Year 15 (at a discount rate of 25 percent). d. Each of years 1 through 3 (at a discount
rate of 12percent).

P/E ratios reported in The Wall Street Journal use the latest closing prices and the last 12
months’ reported earnings per share. Explain why the corresponding earnings–price ratios
(the reciprocals of reported P/Es) are not accurate measures of the expected rates of return
demanded by investors.

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Calculate the real cash flows on the 7 percent U.S. Treasury bond (see Section 3.5) assuming
annual interest payments and an inflation rate of 2 percent. Now show that by discounting these
real cash flows at the real interest rate you get the same PV that you get when you discount the
nominal cash flows at the nominal

Refer again to Practice Question 31. How would the bond’s value change if interest rates fell
to 3.5 percent per year?

Vega Motor Corporation has pulled off a miraculous recovery. Four years ago, it was near
bankruptcy. Now its charismatic leader, a corporate folk hero, may run for president. Vega has
just announced a $1 per share dividend, the first since the crisis hit. Analysts expect an increase
to a “normal” $3 as the company

Some people believe firmly, even passionately, that ranking projects on IRR is OK if each
project’s cash flows can be reinvested at the project’s IRR. They also say that the NPV
rule “assumes that cash flows are reinvested at the opportunity cost of capital.” Think
carefully about these statements. Are they tru

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Look again at Table 4.7. a. How do free cash flow and present value change if asset growth rate
is only 15 percent in years 1 to 5? If value declines, explain why. b. Suppose the business is a
publicly traded company with one million shares outstanding. Then the company issues new
stock to cover the present value of

A famous quarterback just signed a $15 million contract providing $3 million a year for five
years. A less famous receiver signed a $14 million five-year contract providing $4 million now
and $2 million a year for five years. Who is better paid? The interest rate is 10 percent.

It is sometimes argued that the NPV criterion is appropriate for corporations but not for
governments. First, governments must consider the time preferences of the community as a
whole rather than those of a few wealthy investors. Second, governments must have a longer
horizon than individuals, for governments are the

A leasing contract calls for an immediate payment of $100,000 and nine subsequent $100,000
semiannual payments at six-month intervals. What is the PV of these payments if the annual
discount rate is 8 percent?

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Why is a reputation for honesty and fair business practice important to the financial value of the

Does the following manifesto make sense? Explain briefly. We’re a darn successful
company. Our book rate of return has exceeded 20 percent for five years running. We’re
determined that new capital investments won’t drag down that average.

Construct a series of cash flows with no IRR.

You believe that next year the Superannuation Company will pay a dividend of $2 on its
common stock. Thereafter you expect dividends to grow at a rate of 4 percent a year in
perpetuity. If you require a return of 12 percent on your investment, how much should you be
prepared to pay for the stock?

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In real life the future health of the economy cannot be reduced to three equally probable states
like slump, normal, and boom. But we’ll keep that simplification for one more example.
Your company has identified two more projects, B and C. Each will require a $5 million outlay
immediately. The possible payoffs at yea

Compost Science, Inc. (CSI), is in the business of converting Boston’s sewage sludge into
fertilizer. The business is not in itself very profitable. However, to induce CSI to remain in
business, the Metropolitan District Commission (MDC) has agreed to pay whatever amount is
necessary to yield CSI a 10 percent book re

Define the market capitalization rate for a stock. Does it equal the opportunity cost of capital of
investing in the stock?

Discuss the following statement: “We don’t want individual plant managers to get
involved in the firm’s tax position. So instead of telling them to discount after-tax cash flows
at 10 percent, we just tell them to take the pretax cash flows and discount at 15 percent. With a
35 percent tax rate, 15 percent pretax

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A two-year bond pays a coupon rate of 10 percent and a face value of $1,000. (In other words,
the bond pays interest of $100 per year, and its principal of $1,000 is paid off in year 2.) If the
bond sells for $960, what is its approximate yield to maturity?

Norman Gerrymander has just received a $2 million bequest. How should he invest it? There are
four immediate alternatives. a. Investment in one-year U.S. government securities yielding 5
percent. b. A loan to Norman’s nephew Gerald, who has for years aspired to open a big
Cajun restaurant in Duluth. Gerald had arran
Look one more time at Table 4.1, which applies the DCF stock valuation formula to Fledgling
Electronics. The CEO, having just learned that stock value is the present value of future
dividends, proposes that Fledgling pay a bumper dividend of $15 a share in period 1. The extra
cash would have to be raised by an issue of

Siegfried Basset is 65 years of age and has a life expectancy of 12 more years. He wishes to
invest $20,000 in an annuity that will make a level payment at the end of each year until his
death. If the interest rate is 8 percent, what income can Mr. Basset expect to receive each year?

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Fill in the blanks in the followingtable:

In 1880 five aboriginal trackers were each promised the equivalent of 100 Australian dollars for
helping to capture the notorious outlaw Ned Kelley. In 1993 the granddaughters of two of the
trackers claimed that this reward had not been paid. The prime minister of Victoria stated that, if
this was true, the government

Each of the following statements is true. Explain why they are consistent. a. When a company
introduces a new product, or expands production of an existing product, investment in net
working capital is usually an important cash outflow. b. Forecasting changes in net working
capital is not necessary if the timing of al

We said that maximizing value makes sense only if we assume well-functioning capital markets.
What does “well-functioning” mean? Can you think of circumstances in which
maximizing value would not be in all shareholders’ interests?

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You are considering the purchase of an apartment complex that will generate a net cash flow of
$400,000 per year. You normally demand a 10 percent rate of return on such investments. Future
cash flows are expected to grow with inflation at 4 percent per year. How much would you be
willing to pay for the complex if it?

Respond to the following comments: a. “I like the IRR rule. I can use it to rank projects
without having to specify a discount rate.” b. “I like the payback rule. As long as the
minimum payback period is short, the rule makes sure that the company takes no borderline
projects. That reduces risk.”

Take another look at investment opportunity (d) in Practice Question 7. Suppose a bank offers
Norman a $600,000 personal loan at 8 percent. (Norman is a long-time customer of the bank and
has an excellent credit history.) Suppose Norman borrows the money, invests $1 million in real
estate opportunity (d) and puts the r
In August 1994 the Wall Street Journal reported that the winner of the Massachusetts State
Lottery prize had the misfortune to be both bankrupt and in prison for fraud. The prize was
$9,420,713, to be paid in 19 equal annual installments. (There were 20 installments, but the
winner had already received the first paymen

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Alpha Corp’s earnings and dividends are growing at 15 percent per year. Beta Corp’s
earnings and dividends are growing at 8 percent per year. The companies’ assets, earnings,
and dividends per share are now (at date 0) exactly the same. Yet PVGO accounts for a greater
fraction of Beta Corp’s stock price. How is

Unfortunately, your chief executive officer refuses to accept any investments in plant expansion
that do not return their original investment in four years or less. That is, he insists on a payback
rule with a cutoff period of four years. As a result, attractive long-lived projects are being turned
down. The CEO is wil

You estimate that by the time you retire in 35 years, you will have accumulated savings 0 of $2
million. If the interest rate is 8 percent and you live 15 years after retirement, what annual level
of expenditure will those savings support? Unfortunately, inflation will eat into the value of your
retirement income. Assu

a. How much will an investment of $100 be worth at the end of 10 years if invested at 15 percent
a year simple interest? b. How much will it be worth if invested at 15 percent a year compound
interest? c. How long will it take your investment to double its value at 15 percent compound

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Consider the following two mutually exclusive projects: a. Calculate the NPV of each project for
discount rates of 0, 10, and 20 percent. Plot these on a graph with NPV on the vertical axis and
discount rate on the horizontal axis. b. What is the approximate IRR for each project? c. In what
circumstances should the

At the end of June 2001, the yield to maturity on U.S. government bonds maturing in 2006 was
about 4.8 percent. Value a bond with a 6 percent coupon maturing in June 2006. The bond’s
face value is $10,000. Assume annual coupon payments and annual compounding. How does
your answer change with semiannual coupons and a

Crecimiento S.A. currently plows back 40 percent of its earnings and earns a return of 20 percent
on this investment. The dividend yield on the stock is 4 percent. a. Assuming that Crecimiento
can continue to plow back this proportion of earnings and earn a 20 percent return on the
investment, how rapidly will earnin
Use the annuity factors shown in Appendix Table 3 to calculate the PV of $100 in each of: a.
Years 1 through 20 (at a discount rate of 23 percent). b. Years 1 through 5 (at a discount rate of 3
percent). c. Years 3 through 12 (at a discount rate of 9percent).

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How is the discounted payback period calculated? Does discounted payback solve the
deficiencies of the payback rule? Explain.

Consider the following three stocks: a. Stock A is expected to provide a dividend of $10 a share
forever. b. Stock B is expected to pay a dividend of $5 next year. Thereafter, dividend growth is
expected to be 4 percent a year forever. c. Stock C is expected to pay a dividend of $5 next year.
Thereafter, dividend gr

Calculate the IRR (or IRRs) for the following project: For what range of discount rates does the
project havepositive-NPV?

Icarus Air has one million shares outstanding and expects to earn a constant $10 million per year
on its existing assets. All earnings will be paid out as dividends. Suppose that next year Icarus
plans to double in size by issuing an additional one million shares at $100 a share. Everything
will be the same as before b

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Consider the following capital rationing problem: Set up this problem as a linearprogram.

How much will you have at the end of 20 years if you invest $100 today at 15 percent annually
compounded? How much will you have if you invest at 15 percent continuously compounded?

Ms. Smith is retired and depends on her investments for retirement income. Mr. Jones is a young
executive who wants to save for the future. They are both stockholders in Airbus, which is
investing over $12 billion to develop the A380, a new super-jumbo airliner. This
investment’s payoff is many years in the future. A

As winner of a breakfast cereal competition, you can choose one of the following prizes: a.
$100,000 now. b. $180,000 at the end of five years. c. $11,400 a year forever. d. $19,000 for
each of 10 years. e. $6,500 next year and increasing thereafter by 5 percent a year forever. If the
interest rate is 12 percent,

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An oil well now produces 100,000 barrels per year. The well will produce for 18 years more, but
production will decline by 4 percent per year. Oil prices, however, will increase by 2 percent per
year. The discount rate is 8 percent. What is the PV of the well’s production if today’s
price is $14 per barrel?
What is the net present value of a firm’s investment in a U.S. Treasury security yielding 5
percent and maturing in one year?

Kangaroo Autos is offering free credit on a new $10,000 car. You pay $1,000 down and then
$300 a month for the next 30 months. Turtle Motors next door does not offer free credit but will
give you $1,000 off the list price. If the rate of interest is 10 percent a year, which company is
offering the better deal?

In March 2001, Fly Paper’s stock sold for about $73. Security analysts were forecasting a
long-term earnings growth rate of 8.5 percent. The company was paying dividends of $1.68 per
share. a. Assume dividends are expected to grow along with earnings at g = 8.5 percent per year
in perpetuity. What rate of return r w

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In Figure the sloping line represents the opportunities for investment in the capital market and
the solid curved line represents the opportunities for investment in plant and machinery. The
company’s only asset at present is $2.6 million in cash. a. What is the interest rate? b. How
much should the company invest

Refer back to Section 3.2. If the rate of interest is 8 percent rather than 10 percent, how much
would our benefactor need to set aside to provide each of the following? a. $100,000 at the end
of each year in perpetuity. b. A perpetuity that pays $100,000 at the end of the first year and that
grows at 4 percent a year.

A factory costs $400,000. You reckon that it will produce an inflow after operating costs of
$100,000 in year 1, $200,000 in year 2, and $300,000 in year 3. The opportunity cost of capital is
12 percent. Draw up a worksheet like that shown in Table 3.1 and use tables to calculate

a. If the one-year discount factor is .88, what is the one-year interest rate? b. If the two-year
interest rate is 10.5 percent, what is the two-year discount factor? c. Given these one- and two-
year discount factors, calculate the two-year annuity factor. d. If the PV of $10 a year for three
years is $24.49, what i

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The present value of investing in a stock should not depend on how long the investor plans to
hold it. Explain why.

Each of the following formulas for determining shareholders’ required rate of return can be
right or wrong depending on the circumstances: For each formula construct a simple numerical
example showing that the formula can give wrong answers and explain why the error occurs.
Then construct another simple numerical exa
Look again at the project cash flows in Practice Question 6. Calculate the modified IRR as
defined in footnote 5 in Section 5.3. Assume the cost of capital is 12 percent. Now try the
following variation on the modified IRR concept. Figure out the fraction x such that x times C1
and C2 has the same present value as (min

Refer back to the story of Ms. Kraft in Section 3.1. a. If the one-year interest rate were 25
percent, how many plays would Ms. Kraft require to become a millionaire? b. What does the
story of Ms. Kraft imply about the relationship between the one year discount factor, DF1, and
the two-year discount factor, DF2?

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Explain why the discount rate equals the opportunity cost of capital.

Derive the formula for a growing (or declining) annuity.

Look again at the financial forecasts for Growth-Tech given in Table 4.3. This time assume you
know that the opportunity cost of capital is r = .12 (discard the .099 figure calculated in the text).
Assume you do not know Growth-Tech’s stock value. Otherwise follow the assumptions
given in the text. a. Calculate the

If the interest rate is 7 percent, what is the value of the following three investments? a. An
investment that offers you $100 a year in perpetuity with the payment at the end of each year. b.
A similar investment with the payment at the beginning of each year. c. A similar investment
with the payment spread evenly ove

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Borghia Pharmaceuticals has $1 million allocated for capital expenditures. Which of the
following projects should the company accept to stay within the $1 million budget? How much
does the budget limit cost the company in terms of its market value? The opportunity cost of
capital for each project is 11percent.

A company that ranks projects on IRR will encourage managers to propose projects with quick
paybacks and low up-front investment. Is that statement correct? Explain.

Show that your answers to Practice Question 7 are consistent with the rate of return rule for
investment decisions.

Respond to the following comments. a. “My company’s cost of capital is the rate we pay
to the bank when we borrow money.” b. “Net present value is just theory. It has no
practical relevance. We maximize profits. That’s what shareholders really want.” c.
“It’s no good just telling me to maximize my st

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The Titanic Shipbuilding Company has a non-cancelable contract to build a small cargo vessel.
Construction involves a cash outlay of $250,000 at the end of each of the next two years. At the
end of the third year the company will receive payment of $650,000. The company can speed up
construction by working an extra shi

For an outlay of $8 million you can purchase a tanker load of bucolic acid delivered in
Rotterdam one year hence. Unfortunately the net cash flow from selling the tanker load will be
very sensitive to the growth rate of the world economy: a. What is the expected cash flow?
Assume the three outcomes for the economy

Rework Table 4.1 under the assumption that the dividend on Fledgling Electronics is $10 next
year and that it is expected to grow by 5 percent a year. The capitalization rate is 15percent.

The constant-growth DCF formula is sometimes written as where BVPS is book equity value per
share, b is the plowback ratio, and ROE is the ratio of earnings per share to BVPS. Use this
equation to show how the price-to-book ratio varies as ROE changes. What is price-to-book
when ROE = r?

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A random sample of 10 subjects have weights with a standard deviation of 10.3136kg. What is
the variance of their​ weights? Be sure to include the appropriate units with the result.

Assume that Selling Division and Buying Division are both owned by Overall Corporation.
Selling Division sells a product that is used by Buying Division and outside customers. Selling
Division has 28,000 units of excess capacity. Selling Division currently sells the product for $25
per unit and Buying Division currentl

Describe/Explain at least two steps you could take to check whether or not a dataset is normally

Make a chart of the U.S. current account deficit, both in absolute $ value and as a share of GDP
from 1990 to present. Find the most recent estimate of the U.S. current account deficit for the
next two quarters (Note: depending on the availability of actual data. If actual data is available
up to the third quarter of 2

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1. Gamebox, a seller of video-gaming systems, games and online gaming subscriptions, recently
made available a coupon that allows its gaming subscription members to extend their
subscriptions by three months at no charge. Subscribers need only to login to the website using
their user name and password and provide the c

What is the peace dividend (relapsing resources from militancy purposes) from reducing outpur
from OG to OE? More consumer goods of 0F More consumer goods of 0A More consumer
goods of 0A-0D. According to the figure below, OUTPUT OF MILITARY GOODS (units per

DeMarcus Industries manufactures a part used in several models of its automatic dishwashers.
Monthly production costs for 5,000 units are: Direct materials.........................$40,000 Direct
labour..............................10,000 Variable support costs...................25,000 Fixed support

Describe the two-step process of forecasting the balance sheet.

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A set of 200 independent patients take antiacid medication at the start of symptoms, and 80
experience moderate to substantial relief within 90 minutes. Historically, 30% of patients
experience relief within 90 minutes with no medication. If the medication has no effect,
approximate the probability that 80 or more pati

Fad City sells novel clothes that are subject to a great deal of price volatility. A recent item that
cost $22.00 was marked up $12.60, marked down for a sale by $5.40 and then had a markdown
cancellation of $3.10. The latest selling price is: a) $32.30. b) $37.70. c) $27.40. d) $32.26.

1. Department G had 3,600 units 25% completed at the beginning of the period, 11,000 units
were completed during the period; 3,000 units were 20% completed at the end of the period, and
the following manufacturing costs debited to the departmental work in process account during
the period: Work in process, beginning o

How should the cost of quality be factored into the project budget process?

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Ginja, a U.S. citizen, leaves the U.S. at 5:00 PM on July 31, 2016 and arrives in Portugal at
11:00 AM the next day. Right away, she establishes a permanent residence in Portugal and
maintains that permanent residence until she leaves to return her residence to the U.S. at 8:00 PM
on July 1, 2018. During her residence

A Job-shop manufacturer that specializes in replacement parts has no forecasting system in place
and manufactures products based on last month's sales. 24 months of data are available as given
in the following Table. Month______________ Sales Jan-05........................430
Feb............................420 Mar.

A trader in the futures market does not need to hold his or her position open until the delivey)
month. Suppose that Selina has an open short position in five CBOT July corn futures contracts.
What must she do to close out her position prior to July? A. None of the other answers is correct.
B. Enter a short positio
A friend of yours has left his job and must transfer his 401(k) plan to an IRA. He is 40 years old
and has $100,000 saved in his 401(k$ plan. Your friend has visited 3 different brokers and has
received 3 different recommendations. The recommendations are listed below. Explain why each
recommendation might not be a goo

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When cash is debited for rents that are collected but are not yet earned, the amount credited
should be A. recognized as revenue when collected B. presented as a liability until earned C.
recorded as an asset until earned D. presented as a separate item in stockholders' equity

Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The
demand for the company's products far exceeds its manufacturing capacity. The bottleneck (or
constraint) in the production process is upholstery labor-hours. Information concerning three of
Portsmouth's upholstered chairs ap

Based the data in Table 1, what is a reasonable range for the PNC's cost of common equity based
on the own-bond-rate-plus-risk-premium approach? What are some ways this risk premium can
be estimated? Also, discuss the pros and cons of this method. Table 1 below: Table 1. Data Used
in the Analysis Bond Data. Two dolla

An open (from the top) rectangular tank 3 m long, 2.5 m wide and 1.25 m deep is completely
filled with water (ρ=1000 kg m-3). If the tank is moved with an acceleration of 1.5m/s2, find
the quantity of water (in liters) which will spill out of the tank.

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Workers waiting for jobs to open up is most closely associated with a. cyclical unemployment. b.
frictional unemployment. c. seasonal unemployment. d. structural unemployment.

Assume that the following data relative to Kane Company for 2010 is available: Net Income
$2,100,000 Transactions in Common Shares Change Cumulative Jan. 1, 2010, Beginning
number 700,000 Mar. 1, 2010, Purchase of treasury shares (60,000) 640,000 June 1, 2010, Stock
split 2-1 640,000 1,280,000 Nov. 1, 2010, Issua

Define a scope limitation and distinguish between client-imposed and circumstance-imposed

scope limitations. What reporting options are available to auditors when scope limitations are
encountered during the engagement?

In Drosophila, the genes sr (stripe thorax) and e (ebony body) are located at 62 and 70 cM,
respectively, from the left end of chromosome 3. A striped female homozygous for e+ was mated
with an ebony male homozygous for sr+. All the offspring were phenotypically wild-type (gray
body and unstriped). (a) What kind of g

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Mendel did not know of the existence of chromosomes. Had he known, what change might he
have made in his Principle of Independent Assortment?

Does this description of Thor Industries sound more like a functional, product, geographic, or
customer structure, or some combination of these? Explain. Is Thor Industries highly centralized
or decentralized? Explain

Criminalist Frank Mortimer is using digital imaging to enhance latent fingerprints. Indicate
which features of digital imaging he would most likely use for each of the following tasks: a.
Isolating part of a print and enlarging it for closer examination b. Increasing the contrast between
a print and the background

Ramon has decided to make his $95,000 gift to the American Heart Association in the form of
cash. However, he is considering delaying his gift until next year when his AGI will increase to
$300,000 and he will be in the 33% income tax bracket, an increase from his current-year income
tax bracket of 28%. Assume a 6% dis

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Dee is paid $1,345 on November 8, 2015. Dee had cumulative gross earnings, including
overtime pay, of $117,200 prior to this pay. Round your answers to the nearest cent. a. The
amount of OASDI taxes to withhold from Dee's pay is ? b. The amount of HI taxes to withhold
from Dee's pay is?

(a) Use the arc-approximation formula to calculate the price-elasticity of demand coefficient of a
firm's product demand between the (quantity, price) points of (10, $20) and (14, $16). (b)
Calculate the cross-price elasticity of demand coefficient of a firm's product X, given that a 10%
increase in the price of its c

A bamboo plant is growing 1 foot per day. When you first measure it, it is 4 feet tall. Write an
equation to describe the height y, in feet, of the bamboo plant x days after you measure it. What
is the y-intercept? What is the meaning of the y-intercept in this problem?

When it comes to punctuation, you will use commas and periods most frequently. A good writer,
however, needs to know how to use colons and semicolons as well. These two punctuation marks
might look similar, but they serve different purposes. Determine which punctuation rule is
illustrated by the following sentence. 1

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According to the text, to minimize the risk of material misstatement, auditors seek third- party
verification of account balances by mailing customers their statements. Discuss the advantages
of positive and negative confirmations, and ascertain whether or not email and oral confirmations
are acceptable to increase cus
Given the following cost and activity observations for Smithson Company's utilities, use the
high-low method to calculate Smithson's fixed costs per month. Round variable cost per unit to
two decimal places in your calculations. a. $2,530 b. $22,800 c. $1,600 d. $50,600

When a nongovernmental not-for-profit organization spends money for the purpose for which an
external donor intended, then the expense is reported as a A. Decrease in temporarily restricted
net assets. B. Decrease in unrestricted net assets. C. Decrease in permanently restricted net
assets. D. Decrease in curre

Given the following information, determine the activity rate for setups. Round to the nearest
cent. A. $5.77 B. $5.04 C. $5.37 D. s$5.61

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Frank Corporation manufactures a single product that has a selling price of $25.00 per unit.
Fixed expenses total $64,000 per year, and the company must sell 8,000 units to break even. If
the company has a target profit of $19,000, sales in units must be: a) 9,648 b) 8,760 c) 10,375 d)

For service firms such as banks and supermarkets, location decisions are critical elements of
__________ strategy.

A. marketing

B. pricing

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C. promotional

D. efficiency

E. effectiveness

Discuss the purpose of using a diagnostic instrument/model to help manage change. Describe the
key aspects that an instrument/model should effectively identify or outline in order to facilitate

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Mallory Manufacturing produces thermal tents and sleeping bags. The company's products are in
high demand due to the quality and durability of the products. Mallory estimates it could sell 600
tents per month and 600 sleeping bags per month. Following is information for each of these
products: Tent Sleeping Bag Sell
When considering the efficient frontier, financial managers should adhere to all of the following
guidelines except: Select the projects on the leftmost sector of the possible projects Minimize
risk for a given level of return Maximize return for a given level of risk Prefer the project on the
far right side of the

In all of the following problems, use these tax rates and taxable wage: OASDI-6.2% on the first
$113,700; HI-1.45% on all taxable wages. Refer to Instruction 3-1. Crow earned $585.15
during the week ended March 1, 20--. Prior to payday, Crow had cumulative gross earnings of
$4,733.20. Round your answers to the neares

Explain why you agree or disagree with your results? Develop strategies to advance your career
using your strength.

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A company is debating whether to change its cost structure so that fixed costs increase from
$300,000 to $400,000, but variable costs decrease from $5 per unit to $4 per unit. If it were to
implement the change at its current production level of 100,000, profit would not change. What
would happen to the company's profi

Describe three reasons that an immunized bond portfolio will not be perfectly hedged.

When Cynthia tries out for a job as a cheerleader for a large Southern school, she is not chosen.
Cynthia thinks it is because she is an Asian-American, even though she was born in Pittsburgh of
third-generation Asian-Americans. If Cynthia proves this is true, does she have a cause of action
under Title VII?

Consider the following information: direct materials used totaled $124,700; direct labor
amounted to $412,000; overhead was computed to be $789,600; Work in Process Inventory on
March 1, 2014, was $482,500; and Work in Process Inventory on March 31, 2014, was
$597,100. What was the cost of goods manufactured? a. $1,21

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When evaluating the secondary market based upon how the securities are traded, we can divide
the market into two segments: a. A stock market and a board market. b. A bull market and a
board market. c. A broker market and a dealer market d. A primary market and a secondary

Why would an increase in the minimum wage lead to less unemployment? Background In class
this week we presented the traditional textbook explanation of the minimum wage. The
minimum wage is a price floor that tends to increase