Ruiz Jacqueline_FIN7570-800_Module 3 Test
docx
School
William Paterson University *
*We aren’t endorsed by this school
Course
7570
Subject
Finance
Date
Feb 20, 2024
Type
docx
Pages
4
Uploaded by GeneralFire9814
Jacqueline Ruiz
Investment Policy, Ethics, and Portfolio Management
William Paterson University
Professor Malindretos
FIN7570-800
Module 3 Assignment
YOU OUGHT TO DO THE FIRST 4 PROBLEMS. MOREOVER, YOU SHOULD DO 3 ADDITIONAL QUESTIONS FROM EITHER PROBLEMS OR ESSAYS. TOTALLY, YOU HAVE TO DO SEVEN QUESTIONS. EACH IS WORTH
14 POINTS.
A. PROBLEMS:
1. The Z score is 1.7. The values of X1, X2, X3, X4 and X5 are respectively .1, .3, .25, .2 and you have to compute the last one. Explicate the meaning of the different determinants of the Z score. Will this company default? A yes or no answer does not suffice.
Z
−
score
=
1.2
X
1
+
1.4
X
2
+
3.3
X
3
+
0.6
X
4
+
X
5
X
5
=
Z
−
1.2
X
1
−
1.4
X
2
−
3.3
X
3
−
0.6
X
4
X
5
=
1.7
−
1.2
(
0.1
)
−
1.4
(
0.3
)
−
3.3
(
0.25
)
−
0.6
(
0.2
)
=
1.7
−
0.12
−
0.42
−
0.825
−
0.12
=
0.215
The determinants of the Z-score are:
1.
X
1
= Working Capital divided by Total Assets which measures the ability of a company to cover its short-term liabilities with its short-term assets.
2.
X
2
= Retained Earnings divided by Total Assets which reflects the profitability of the company and its ability to reinvest earnings for growth.
3.
X
3
= Earnings Before Interest and Taxes divided by Total Assets which indicates the operational efficiency of the company in generating profits relative to its total assets.
4.
X
4
= Market Value of Equity divided by Total Liabilities which reflects the market perception of the company's financial health relative to its debt obligations.
5.
X
5
= Sales divided by Total Assets which measures the efficiency of asset utilization in generating sales revenue.
Whether the company will default depends on its Z-score. If the calculated Z-score is below 1.81, it suggests that the company is at risk of financial distress and potential bankruptcy. However, without knowing the industry average or historical data for comparison, it's difficult to conclusively determine if the company will default based solely on the Z-score provided in the question.
2. Compute the duration of a 30-year 9% bond if yields to maturity are 6% presently. What if rates drop by 2%. Ascertain that you compute both the exact price, via the bond valuation formulas, and the approximate price by using duration.
Exact Price
=
P
=
∑
t
=
1
n
C
(
1
+
r
)
t
+
¿
F
(
1
+
r
)
n
=
∑
t
=
1
30
90
(
1
+
0.06
)
t
+
¿
1090
(
1
+
0.06
)
30
=
$
1
,
428.61
¿¿
3. There are 3 explanations of the shape of the yield curve (term structure of interest rates.) The shape of the yield curve represents the relationship between the yield and the time to maturity of debt securities and provides insight into the market's potential regarding future interest rates and financial conditions. The yield curves are a tool for investors, policymakers, and economists. The three common explanations for the shape of the yield curve are the normal yield curve, the inverted yield curve, and the flat or humped yield curve.
The normal yield curve is the most common shape where longer-term bonds have higher yields than shorter-term bonds. This shape implies that investors can expect financial growth and rising inflation in the future. Investors demand higher yields for locking in their money for longer periods due to the increased uncertainty overtime. The inverted yield curve occurs when short-term interest rates are higher than long-term rates. It is often understood as a sign of an impending financial recession. Investors may expect interest rates to fall in the future due to deflationary difficulties leading them to want to lock in longer-term yields while they are still relatively high. The flat yield curve occurs when the yields on short-term and long-term bonds are similar while the humped yield curve is a variation of the flat curve where yields in the middle of the maturity range are higher than both the short-term and long-term yields. This shape may show uncertainty about future financial conditions.
Each yield curve shape offers valuable views on interest rate determination but a combination of factors more likely influence interest rates in practice, with central bank policies, market expectations, and liquidity considerations playing significant roles.
4. There is a bond, which has a duration of 7 and a convexity of 40. Compute exact and approximate prices.
∆ P
exact
=−
D
∗
∆ y
∗
P
+
1
2
∗
C
∗
(
∆ y
)
2
∗
P
∆ P
¿
=−
D
∗
∆ y
∗
P
a) If the bond increases by 3%, what will its price alter by?
∆ y
=
0.03
∆ P
exact
=−
7
∗
0.03
∗
P
+
1
2
∗
40
∗
(
0.03
)
2
∗
P
=−
0.21
P
+
0.018
P
=−
0.192
P
∆ P
¿
=−
7
∗
0.03
∗
P
=−
0.21
P
b) If it decreases by 3%, what will the alteration of price be?
∆ y
=−
0.03
∆ P
exact
=−
7
∗−
0.03
∗
P
+
1
2
∗
40
∗
(
−
0.03
)
2
∗
P
=
0.21
P
+
0.018
P
=
0.228
P
∆ P
¿
=−
7
∗−
0.03
∗
P
=
0.21
P
c) Discuss without derivations. Are the true results symmetric in the 2 cases?
The exact results are not perfectly symmetric in both cases. The exact price change due to an increase in
yield is approximately $0.192P while the exact price change due to a decrease in yield is approximately $0.228P. Both are relatively close to each other, but they are not the same. When yields increase, convexity causes the bond price to decrease by a slightly larger amount than when yields decrease by the same percentage.
5. We are considering investing in one of the following two bonds. The one is a 2 year, 7% versus one, which is 25 year, 3% bond. Which shall we choose, if we predict that market rates will rise from 10% to 12 % in the future one year? Compute the exact amount more we shall make by investing in the right one. 2-year 7% Bond 10% Current Rate:
Exact Price
=
P
=
∑
t
=
1
n
C
(
1
+
r
)
t
+
¿
F
(
1
+
r
)
n
=
∑
t
=
1
2
70
(
1
+
0.10
)
t
+
¿
1070
(
1
+
0.10
)
2
=
$
1,005.79
¿¿
2-year 7% Bond 12% Future Rate:
Exact Price
=
P
=
∑
t
=
1
n
C
(
1
+
r
)
t
+
¿
F
(
1
+
r
)
n
=
∑
t
=
1
2
70
(
1
+
0.12
)
t
+
¿
1070
(
1
+
0.12
)
2
=
$
971.30
¿¿
Change
=
Future – Current
=
$
971.30
−
$
1,005.79
=−
$
34.49
25-year 3% Bond 10% Current Rate:
Exact Price
=
P
=
∑
t
=
1
n
C
(
1
+
r
)
t
+
¿
F
(
1
+
r
)
n
=
∑
t
=
1
25
30
(
1
+
0.10
)
t
+
¿
1030
(
1
+
0.10
)
25
=
$
367.38
¿¿
25-year 3% Bond 12% Future Rate:
Exact Price
=
P
=
∑
t
=
1
n
C
(
1
+
r
)
t
+
¿
F
(
1
+
r
)
n
=
∑
t
=
1
25
30
(
1
+
0.12
)
t
+
¿
1030
(
1
+
0.12
)
25
=
$
295.88
¿¿
Change
=
Future – Current
=
$
295.88
−
$
367.38
=−
$
71.50
We can see that the price of the 2-year 7% bond decreases by a smaller amount compared to the 25-
year 3% bond. If market rates rise from 10% to 12% in the future one year, investing in the 2-year 7% bond would result in a smaller loss in bond value compared to investing in the 25-year 3% bond. Therefore, based on the comparison of price changes, the better investment option would be the 2-year 7% bond.
6. We have the following information. The debt to assets, average collection period, ITO, net profit margin and return on equity are .70, 60 days, 2 times, 9% and 18% respectively for a company, while they are .45, 30 days, 6 times, 5% and 11% for the industry. Evaluate the company’s prospects.
Company
Industry
Debt to Assets
0.70
0.45
Average Collection Period
60 days
30 days
ITO
2 times
6 times
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Net Profit Margin
9%
5%
Return on Equity
18%
11%
The company has a higher debt to assets ratio compared to the industry, showing that a larger portion of its assets is financed by debt. The company takes longer to collect its accounts receivable compared to the industry average. This shows issues with credit policies or customer payment behaviors. The company's inventory turnover rate is lower than the industry average, indicating less efficient management of inventory or potential overstocking issues. The company's net profit margin is higher than the industry average, showing better profitability in terms of converting revenue into profit. The company's return on equity is higher than the industry average, implying better utilization of shareholder equity to generate profits. While the company shows profitability and good return metrics, it needs to focus on improving operational efficiency and managing its financial leverage to ensure sustained growth and competitiveness in the industry.
B. ESSAYS:
7. Essay #5. Describe the covenants of bonds. How do they affect default probability?
Bond covenants are legally binding clauses, and if breached will trigger compensatory or other legal action. In simpler terms, a bond covenant is a written promise in a bond document stating that the bond
issuer will or will not do something, for example borrow more than a particular amount of money. Bond covenants exist to protect the bondholders. Bond covenants are utilized to restrict the borrowing firm from making decisions which will deteriorate its financial health from the time of borrowing. There are both affirmative and negative covenants. Affirmative covenants require the issuer to take certain actions or meet specific requirements. Examples include maintaining certain financial ratios, providing financial statements regularly, or maintaining insurance coverage. Negative covenants restrict the issuer from taking certain actions that could negatively impact bondholders' interests. Examples include restrictions on issuing additional debt, making certain investments, or paying dividends beyond a
certain threshold.
Covenants requiring the issuer to maintain certain financial ratios or provide regular financial statements enable bondholders to monitor the issuer's financial health. If the issuer fails to meet these requirements, it could signal financial distress, increasing the likelihood of default. Negative covenants that limit the issuer's ability to take on additional debt help mitigate default risk by preventing the issuer
from becoming overly leveraged. This reduces the likelihood of default due to an unsustainable debt burden. By protecting assets and limiting risky behavior, these covenants reduce the likelihood of default by ensuring the issuer maintains sufficient collateral or resources to meet its obligations. Covenants may require the issuer to maintain certain levels of cash flow or liquidity, ensuring it has the resources to make interest and principal payments on the bonds. Adequate cash flow management reduces the risk of default due to cash shortages.
In summary, covenants play a significant role in influencing default probability by imposing restrictions, monitoring requirements, and financial safeguards on the issuer. By aligning the interests of bondholders and issuers and promoting responsible economic management, covenants help mitigate default risk.
Related Documents
Related Questions
The Elberta Fruit Farm of Ontario has always hired transient workers to pick its annual cherry crop. Janessa Wright, the farm
manager, just received information on a cherry picking machine that is being purchased by many fruit farms. The machine is a
motorized device that shakes the cherry tree, causing the cherries to fall onto plastic tarps that funnel the cherries into bins. Ms.
Wright has gathered the following information to decide whether a cherry picker would be a profitable investment for the Elberta
Fruit Farm:
a. Currently, the farm is paying an average of $250,000 per year to transient workers to pick the cherries.
b. The cherry picker would cost $540,000. It would be depreciated using the straight-line method and it would have no salvage
value at the end of its 5-year useful life.
c. Annual out-of-pocket costs associated with the cherry picker would be: cost of an operator and an assistant, $80,000
insurance, $4,000; fuel, $12,000, and a maintenance contract. $15,000.
Click…
arrow_forward
Fast pls solve this question correctly in details 5 min pls I will give u like for sure
Surbh
arrow_forward
Fancy cha
5. Do each of the following for each tableau:
a) Find an initial solution using the Northwest Corner Rule
b) If the solution you find using the Northwest Corner Rule is not optimal, apply the stepping stone
algorithm to find an optimal solution.
For a ma'xımum profrt of$394
(ni boeu o B
i.
1
2
3
Gamimite od seis E
3
1
13
C bos I L
I
3
81
4
II
5
2
4
2
Demands
(Problem #5 is continued on the next page →)
costa4
arrow_forward
Please help me answer parts D and F ONLY.
Thank you!
arrow_forward
Please correct answer and don't use hend raiting
arrow_forward
myOpenMath
Course Messages Forums Calendar | Gradebook
Home > Math 173-4 Spring 2024> Assessment
Quiz 2 (Sec. 1.5-1.7)
54 points possible 5/12 answered
Question 6
The graph of the function
y = f(x - 39)
can be obtained from the graph of
y = f(x)
by one of the following actions:
> Next Question
Home | My
Oshifting the graph of f(x) to the right 39 units
shifting the graph of f(x) to the left 39 units
shifting the graph of f(x) upwards 39 units
shifting the graph of f(x) downwards 39 units
arrow_forward
Problem Set 1 Part 1
These problems focus on percent. The related text information is chapter 7 section 7-1. Examples 3,4, 5, 7, 8 will be helpful.
Only do the one question that corresponds to your assigned number. Do not answer all of the questions.
Be sure that you show all of your work to reach your answer. Each step must be on a separate line. Your method to reach your answer must be clear and include explanations.
Only round when you have reached a final answer. Do not round during the steps to reach the final answer. Use the longer number that your calculator gives you.
Final answers
Round money to the nearest cents.
Example $46.778 rounds to $46.78
Round answers with decimals to the nearest hundredth.
Example: 876.4567 rounds to 876.46
Example: 34.321 rounds to 34.32
Exercise
A store has a sale with 10 % off every item. When you enter the store, you receive a coupon that states you receive an additional 10 % off any sale price. If you plan to purchase an item…
arrow_forward
Pls solve this question correctly instantly in 5 min i will give u 3 like for sure
arrow_forward
F
Mathematics In The Modern WorldNote: If you have already answered the problems in this post, kindly ignore it. If not, then answer it. Thank you, Tutor!Content Covered:- Engineering Economics- Simple Interest, Compound Interest, Annuity, Financial Mathematics & Comparison of AlternativesDirections:Solve the problem below by showing the complete solution. In return, I will give you a good rating. Thank you so much!Note: Please be careful with the calculations in the problem. Kindly double check the solution and answer if there is a deficiency. And also, box the final answer.Thank you so much!
arrow_forward
Learning
SE MINDTAP
evo/index.html?deploymentid=60338517901669990751687760&elSBN=9780357517642&nbld=3626933&snap... ☆
lomework
6300.
1
mancial Lailuialvi vi a spicoubnicel.
Hide Feedback
Correct
X
f6
Quantitative Problem 1: You plan to deposit $2,200 per year for 6 years into a money market account with an annual return of 2%. You plan
to make your first deposit one year from today.
a. What amount will be in your account at the end of 6 years? Do not round intermediate calculations. Round your answer to the nearest cent.
4
b. Assume that your deposits will begin today. What amount will be in your account after 6 years? Do not round intermediate calculations.
Round your answer to the nearest cent.
6
Hide Feedback
Incorrect
F
Check My Work Feedback
Review the FVAN definition and its equation.
Q Search
Understand the difference between an ordinary annuity and an annuity due.
Be careful about the order of mathematical operations if using the equation.
If using a financial calculator, be…
arrow_forward
Question 2
Listen
Which linear regression equation matches the given data sets? Use your TI-84+
calculator to determine the equations.
Hint: Click STAT and chose option 1: EDIT. Enter your data into L1 (explanatory
variable) and L2 (response variable). Click STAT, choose CALC, and choose op-
tion 8.
Table A
x
y
X
Table B
y
0
7.5
0
6.8
1
7.7
1
5
2
8
2
7.5
3
8
3
7
4
8.5
4
9
Table C
Table D
X
y
X
y
0
11.2
0
15
1
7.7
1
77
2
8
NOT AN OPTION
3
4.5
3
6.5
4
4.6
4
3.2
ŷ=7.48+0.23x
a. Table B
ŷ-5.78+0.64x
b. Table C
y=10.48-1.64x
c. Table A
arrow_forward
88 MULTIPLE CHOICE
Question 7
Listen
Is the following scenario a permutation or combination?
Your teacher plans to grade a random selection of 5 problems from a 15 prob-
lem assignment.
Hint: Consider whether or not the order of the problems pulled matters.
A combination
B permutation
C
both
arrow_forward
Good day! I want you to answer only letter (2a).Note that PW, AW, and FW means (Present Worth)(Annual Worth) and (Future Worth)This is how you answer the problem. Identify first the given. Next identify what is being ask in the problem.Third show me the Formula first before you plug-in the given into it ,i want to study and learn from your solution
arrow_forward
9 Concept 1: Competition & Dep x
9 16.4 Savings plan homework u x
Login - Powered by Skyward
9 Paired Selections - STAAR Prep x
A my.hrw.comAwwtb/api/viewer.pl
O Personal Math Trainer
Lesson 16.4 - Homework-Homework
3
6 7
Round your answers to two decimal places, if necessary.
At the beginning of each of the last three years, Lucas put $7,000 from his earnings as a waiter into a
college savings account that earned 1.7% interest compounded annually. Now he will spend an
estimated $21,600 to attend his local community college for 2 years and not take out a student loan.
Complete the table to determine whether Lucas has saved enough money to attend community college.
2
3
Year
1
Beginning balance
$0
Amount deposited
$7,000
$7,000
$7,000
New balance
$7,000
$
Amount of interest earneds
Ending balance
$
Lucas (select)
v enough money to attend community college.
v Check Answer
Ne
Question 5 of 8
P Search
ILLUCH
arrow_forward
O X
A WA Probability 1- Intro to Probabi X
B5 Probability 1: Introduction to Prol X
* O
->
webassign.net/web/Student/Assignment-Responses/submit?dep3D28685826&tags%=Dauto. <*
MY NOTES
ASK YOUR TEACHER
PRACTICE ANOTHER
Shipping constitutes a large part of the budget for online retailers. One such retailer ships fragile items that occasionally
get broken and have to be replaced/re-shipped. Historically, 8% of these items have gotten broken during shipping.
(a)If an item is shipped, what is the probability that it does not get broken? In other words, what is P(not broken)? Express
your answer as a decimal rounded to two decimal places.
(b) If the retailer ships 4 separate items, what is the probability that none will be broken during shipping? Express your
answer as a decimal rounded to three decimal places.
Submit Answer
7 O 10:29
Ili
arrow_forward
Search for tools, help, and more (Alt + O
IMPORTANT: Answer grading policy
For an answer to be graded as correct, you must use an Excel formula:
1. Begin each formula with an = sign.
2. Reference cells, instead of entering values.
Example: =B3+C3
OK
☑
15
arrow_forward
My question is How do I find the formula for Cell A11 and where do I need to calculate those so that I can work on that easily before putting in Excel?
arrow_forward
Use the information above to complete the missing values in the table below $2,500 invested 4% interest.
arrow_forward
6.2 Saving and Investing
n.hawkeslearning.com/Portal/Lesson/lesson_practice#
niversity
X
Question 9 of 13, Step 1 of 1
X
- Save & Exit Practice Lesson: 6.2 Saving and Investing
Lesson 6.2 Saving and Investin X
Answer
How to enter your answer (opens in new window)
Ⓒ2024 Hawkes Learning
$350
Your answer is incorrect. Please choose one of the following:
Google Chrome - The Fast & Sex
3/13
Correct
Lateral Flexion: What Is It and
Molly starts an IRA (Individual Retirement Account) at the age of 28 to save for retirement. She deposits $350 each month. The IRA has an average annual interest rate of
7% compounded monthly. How much money will she have saved when she retires at the age of 65? Round your answer to the nearest cent, if necessary.
X +
GRANT GREENE
Explain Error
5
Incorrect
Formulas
Keypad
Keyboard Shortcuts
Try Again
arrow_forward
B Milestone Two Guidel x
G module 5 problem set
n Set: Mod x
* CengageNOWv2 | Onl x
Cengage Learning
.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogres...
Proceeds from Notes Payable
On January 26, Bella Co. borrowed cash from Conrad Bank by issuing a 30-day note with a face amount of $48,000. Assume a 360-day year.
a. Determine the proceeds of the note, assuming the note carries an interest rate of 6%.
b. Determine the proceeds of the note, assuming the note is discounted at 6%.
Check My Work
Previous
Next
All work saved.
Email Instructor
Save and Exit
Submit Assignment for Grading
2:58 PM
56°F
11/28/2021
arrow_forward
blem Set: ModX
* CengageNOWv2 | On x
* Cengage Learning
B Milestone Two Guidel x
G module 5 problem set X
ow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=. Lo
еВook
Show Me How
Entries for notes payable
Bennett Enterprises issues a $660,000, 45-day, 9%, note to Spectrum Industries for merchandise inventory.
Assume a 360-day year. If required, round your answers to the nearest dollar.If an amount box does not require an entry, leave it blank.
a. Journalize Bennett Enterprises' entries to record:
1. the issuance of the note.
2. the payment of the note at maturity.
2
b. Journalize Spectrum Industries' entries to record:
1. the receipt of the note.
2. the receipt of the payment of the note at maturity.
Previous
Check My Work
56°F Mostly cloudy
ヘ 回。
arrow_forward
2. Use the worksheet tab Problem 2 A-FV Retirement and
Problem 2 B -PV Invest
K
File
6
7
ñ
Paste
K11
16
17
18
Book1 - Excel
Clipboard
Home Insert
Calibri
X
Dr-
Ready
B I U
89-
Draw Page Layout Formulas Data Review View
== 28
M =100-
Font
2 Return Rate
3 Investment Duration in Years
4 Amount Invested
Future Investment Value
fx
One-Time Investment Scena
Return Rate
9Investment Duration in Years
10 Monthly Payroll Deduction
11 Company Match
12 Monthly Investment
13 Current Balance
14 Future Investment Value
15
Sheet1
11
A A
A-
Retirement Plan Scenario
Sheet2
Accessibility: Investigate
D O AI
19
9
Return Rate
=
5.500%
13
7500
Alignment
4.500%
35
500
50%
750
$10,000.00
19
D
O Search
General
-
$ % 9
68 28
Number
Automate Help Acrobat
Conditional Formatting
W
Format as Table
Cell Styles -
Styles
Goal seek
Future Savings Value at $20,000
Future Savings Value at $25,000
Insert
Delete
Format -
Cells
G
O
dating
FS
Sensitivity
Retirement plan Goal Seek Solution by changing Return Rate-Goal seek…
arrow_forward
Bark and Bliss Limited is a pet supply company headquartered in Edmonton, Alberta. They have four different lines
of business. Here is an excerpt of their financial statements for the December 31, 2020 fiscal
year:
Dog Walking
Brick &
Division
Online Shop
Pet Training
& Pet Care
Mortar Stores
Sales
$1
22,500,000
13,980,000
27,630,500
5,407,000
Net operating income
$4
1,250,000
1,840,000
2,845,200
1,134,750
Average operating assets
$1
7,580,000
8,275,000
14,500,000
5,250,000
Bark and Bliss Limited has a policy that all investments must have a rate of return of at least
15%.
Required:
a. What is the return on investment for each of Bark and Bliss' four lines of business? Round your calculations to
one decimal place,
b. If the Online Store division was able to reduce its operating expenses by $57,000, what would be its new return
on investment?
Acti
c. What is the residual income for each of Bark and Bliss' four lines of businessa
Go to
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i...
Finance
ISBN:9780077861759
Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:McGraw-Hill Education
Related Questions
- The Elberta Fruit Farm of Ontario has always hired transient workers to pick its annual cherry crop. Janessa Wright, the farm manager, just received information on a cherry picking machine that is being purchased by many fruit farms. The machine is a motorized device that shakes the cherry tree, causing the cherries to fall onto plastic tarps that funnel the cherries into bins. Ms. Wright has gathered the following information to decide whether a cherry picker would be a profitable investment for the Elberta Fruit Farm: a. Currently, the farm is paying an average of $250,000 per year to transient workers to pick the cherries. b. The cherry picker would cost $540,000. It would be depreciated using the straight-line method and it would have no salvage value at the end of its 5-year useful life. c. Annual out-of-pocket costs associated with the cherry picker would be: cost of an operator and an assistant, $80,000 insurance, $4,000; fuel, $12,000, and a maintenance contract. $15,000. Click…arrow_forwardFast pls solve this question correctly in details 5 min pls I will give u like for sure Surbharrow_forwardFancy cha 5. Do each of the following for each tableau: a) Find an initial solution using the Northwest Corner Rule b) If the solution you find using the Northwest Corner Rule is not optimal, apply the stepping stone algorithm to find an optimal solution. For a ma'xımum profrt of$394 (ni boeu o B i. 1 2 3 Gamimite od seis E 3 1 13 C bos I L I 3 81 4 II 5 2 4 2 Demands (Problem #5 is continued on the next page →) costa4arrow_forward
- Please help me answer parts D and F ONLY. Thank you!arrow_forwardPlease correct answer and don't use hend raitingarrow_forwardmyOpenMath Course Messages Forums Calendar | Gradebook Home > Math 173-4 Spring 2024> Assessment Quiz 2 (Sec. 1.5-1.7) 54 points possible 5/12 answered Question 6 The graph of the function y = f(x - 39) can be obtained from the graph of y = f(x) by one of the following actions: > Next Question Home | My Oshifting the graph of f(x) to the right 39 units shifting the graph of f(x) to the left 39 units shifting the graph of f(x) upwards 39 units shifting the graph of f(x) downwards 39 unitsarrow_forward
- Problem Set 1 Part 1 These problems focus on percent. The related text information is chapter 7 section 7-1. Examples 3,4, 5, 7, 8 will be helpful. Only do the one question that corresponds to your assigned number. Do not answer all of the questions. Be sure that you show all of your work to reach your answer. Each step must be on a separate line. Your method to reach your answer must be clear and include explanations. Only round when you have reached a final answer. Do not round during the steps to reach the final answer. Use the longer number that your calculator gives you. Final answers Round money to the nearest cents. Example $46.778 rounds to $46.78 Round answers with decimals to the nearest hundredth. Example: 876.4567 rounds to 876.46 Example: 34.321 rounds to 34.32 Exercise A store has a sale with 10 % off every item. When you enter the store, you receive a coupon that states you receive an additional 10 % off any sale price. If you plan to purchase an item…arrow_forwardPls solve this question correctly instantly in 5 min i will give u 3 like for surearrow_forwardF Mathematics In The Modern WorldNote: If you have already answered the problems in this post, kindly ignore it. If not, then answer it. Thank you, Tutor!Content Covered:- Engineering Economics- Simple Interest, Compound Interest, Annuity, Financial Mathematics & Comparison of AlternativesDirections:Solve the problem below by showing the complete solution. In return, I will give you a good rating. Thank you so much!Note: Please be careful with the calculations in the problem. Kindly double check the solution and answer if there is a deficiency. And also, box the final answer.Thank you so much!arrow_forward
- Learning SE MINDTAP evo/index.html?deploymentid=60338517901669990751687760&elSBN=9780357517642&nbld=3626933&snap... ☆ lomework 6300. 1 mancial Lailuialvi vi a spicoubnicel. Hide Feedback Correct X f6 Quantitative Problem 1: You plan to deposit $2,200 per year for 6 years into a money market account with an annual return of 2%. You plan to make your first deposit one year from today. a. What amount will be in your account at the end of 6 years? Do not round intermediate calculations. Round your answer to the nearest cent. 4 b. Assume that your deposits will begin today. What amount will be in your account after 6 years? Do not round intermediate calculations. Round your answer to the nearest cent. 6 Hide Feedback Incorrect F Check My Work Feedback Review the FVAN definition and its equation. Q Search Understand the difference between an ordinary annuity and an annuity due. Be careful about the order of mathematical operations if using the equation. If using a financial calculator, be…arrow_forwardQuestion 2 Listen Which linear regression equation matches the given data sets? Use your TI-84+ calculator to determine the equations. Hint: Click STAT and chose option 1: EDIT. Enter your data into L1 (explanatory variable) and L2 (response variable). Click STAT, choose CALC, and choose op- tion 8. Table A x y X Table B y 0 7.5 0 6.8 1 7.7 1 5 2 8 2 7.5 3 8 3 7 4 8.5 4 9 Table C Table D X y X y 0 11.2 0 15 1 7.7 1 77 2 8 NOT AN OPTION 3 4.5 3 6.5 4 4.6 4 3.2 ŷ=7.48+0.23x a. Table B ŷ-5.78+0.64x b. Table C y=10.48-1.64x c. Table Aarrow_forward88 MULTIPLE CHOICE Question 7 Listen Is the following scenario a permutation or combination? Your teacher plans to grade a random selection of 5 problems from a 15 prob- lem assignment. Hint: Consider whether or not the order of the problems pulled matters. A combination B permutation C botharrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Essentials Of InvestmentsFinanceISBN:9781260013924Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.Publisher:Mcgraw-hill Education,
- Foundations Of FinanceFinanceISBN:9780134897264Author:KEOWN, Arthur J., Martin, John D., PETTY, J. WilliamPublisher:Pearson,Fundamentals of Financial Management (MindTap Cou...FinanceISBN:9781337395250Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage LearningCorporate Finance (The Mcgraw-hill/Irwin Series i...FinanceISBN:9780077861759Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan ProfessorPublisher:McGraw-Hill Education
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i...
Finance
ISBN:9780077861759
Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:McGraw-Hill Education