ACCT 7130
A profit center is a part of the business that has control over both costs and
revenues, but no control over investment funds.
An investment center is a profit center where management also makes capital
investment decisions.
Evaluation measures
ECE 3530 PRACTICE FINAL 2 Solutions
1. A random sample with size n=200 is taken from a population with a known standard
deviation = 0.56. The sample has the following quantile and normal-quantile plots:
Quantile Plot
Normal-Quantile Plot
Based on this inf
The correct alternative has an asterisk next to it.
1. A simple random sample of 70 coee drinkers was taken. Each sampled coee drinker was asked to
taste two unmarked cups of coee, one of which is actually Brand A and the other is Brand B, and
was asked w
MAT167
(Compile date: Sat Jan 31 10:49:55 2009).
Home Work: Intro to R
Tanbakuchi
The following homework will help you get acquainted with the R statistical software package. It will seem unfamiliar and awkward at rst, but stick with it, soon it will be e
CorporateFinanceReviewQuestions
1. Maple Ltd. currently has 10 million common shares outstanding. Maple has just paid a
dividend of $0.25 per share and investment analysts have informed you that the dividends
are expected to grow by 7% annually for the fo
ACCT 7130
A merchandiser purchases products that are recorded on the balance sheet in
inventory until sold to customers. A manufacturer purchases raw material
ingredients and adds human effort and machine support. The finished products
are recorded on the
ACCT 7130
The decision-making process begins with strategic, operational, and financial
planning. Implementing the plans and executing operational activities provide
performance data. After the data are collected, performance is analyzed; and the
feedback
ACCT 7130
Consider two projects, each with a five-year life and each costing $6,000. Project
one provides a steady cash inflow of $2,000 for five years. Project two provides
a steady cash inflow of $1,000 for four years, but in the fifth year, the cash in
ACCT 7130
Some analytical considerations: Sensitivity analysis and post audits are helpful
in dealing with estimates. Cash flows far into the future are often not considered
because of uncertainty and a small impact on present values. Cash flows are
assum
ACCT 7130
Calculate the NPV if Brown Company's cost of capital is 14 percent instead of
twelve percent. These calculations are shown on this slide. Note that the NPV is
smaller using the larger interest rate.
Profitability index is the present value of ca
ACCT 7130
The firm's cost of capital is usually regarded as the most appropriate choice for
the discount rate used to calculate the present value of the investment proposal
being analyzed. The cost of capital is the average rate of return the company
must
ACCT 7130
Managers often face the problem of deciding how scarce resources are going to
be utilized. Usually, fixed costs are not affected by this particular decision, so
management can focus on maximizing total contribution margin.
Integrated Technologie
ACCT 7130
The relevant cost of making a component is the cost that can be avoided by
buying the component from an outside supplier. A decision rule is that costs
avoided must be greater than outside supplier's price to consider buying the
component.
Micro
ACCT 7130
The decision-making process begins with strategic, operational, and financial
planning. Implementing the plans and executing operational activities provide
performance data. After the data are collected, performance is analyzed; and the
feedback
ECE 3530 PRACTICE MIDTERM 2 SOLUTIONS
1. A continuous random variable X has the probability density function:
0,
x<1
hx h, 1 x 2
f (x) =
3h hx, 2 x 3
0,
x>3
which can be graphed as
(a) Find h which makes f (x) a valid probability density function.
The a