Corporate Finance: The Core (Berk/DeMarzo) Chapter 3 - Arbitrage and Financial Decision Making 7) You have an investment opportunity in Germany that requires an investment of $250‚000 today and will produce a cash flow of €208‚650 in one year with no risk. Suppose the risk-free rate of interest in Germany is 6% and the current competitive exchange rate is €0.78 to $1.00. What is the NPV of this project? Would you take the project? A) NPV = 0; No B) NPV = 2‚358; No C)
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Symone Reynolds Homework -Week 10 Case Study Your division is inconsideration for two investments‚ each of which requires an upfront expenditure of $25 million. You estimate that the cost of capital is 10% and that the investments will produce the following after tax cash flows (in millions of dollars): Year Project A Year Project A Project B 0 (25‚000‚000.00) PBP DPBP 1 5‚000‚000 20‚000‚000 1 5‚000‚000
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Homework 2 Solution 1. Consider the diagram of the electronic system‚ which shows the probabilities of the system components operating properly. The entire system operates if assembly III and at least one of the components in each of assemblies I and II operates. Assume that the components of each assembly operate independently and that the assemblies operate independently. What is the probability that the entire system operates? 0.9 0.9 0.8 0.8 0.7 I II III 0.95 Solution: P = [1-(1-0.9)*(1-0
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Homework 5 - Solutions 1. Download the external file HW5-States.txt from the Blackboard. Read it into SAS. It contains the Statehood Order‚ State Name‚ and Statehood Date. Finish the following tasks. Calculate the days and years between the statehood date and the Independence Day (4th of July‚ 1776) for each state. For each state‚ what is its Bicentennial? Summarize the number of statehood for each month (January to December‚ ignore the year). Note: only one row is expected for each month for your
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ISyE 6201: Manufacturing Systems Instructor: Spyros Reveliotis Solutions to Homework 1 A. Chapter 2‚ Problem 4. (a) D = 60 units/wk × 52 wk/yr = 3120 units/yr h = ic = 0.25/yr ×$0.02 = $0.005/ yr A = $12 2AD 2 × 12 × 3120 Q∗ = = = 3869.88 ≈ 3870 h 0.005 The time between orders is given by 3870 Q∗ = = 1.24 yr = 14.88 mo T∗ = D 3120 (b) D 3120 units/yr = $12 = $9.67/yr Q 3870 units Q 3870 units Holding cost is h = × $0.005/yr = $9.675/yr. 2 2 The costs are essentially
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answers to the following questions. (a) If events A and B are mutually exclusive and collectively exhaustive‚ are Ac and Bc mutually exclusive? Solution Ac ∩ Bc = (A ∪ B)c = Ωc = ∅. Thus the events Ac and Bc are mutually exclusive. (b) If events A and B are mutually exclusive but not collectively exhaustive‚ are Ac and Bc collectively exhaustive? Solution Let C = (Ac ∪ Bc )c ‚ that is the part that is not contained in Ac ∪ Bc . Using De Morgan’s Law C = A ∩ B = ∅. Thus‚ there is nothing that is
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ISyE 3104: Introduction to Supply Chain Modeling: Manufacturing and Warehousing Instructor : Spyros Reveliotis Summer 2003 Solutions for Homework #1 Chapter 1 Operations and Productivity DISCUSSION QUESTIONS 1. Define Operations Management in your own words. Operations management can be defined as the field that deals with the effective and efficient design and operation of the transformation processes that provide the various goods and services.. 2. Consider the potential contribution
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Homework Solution2010Fall second half Ch14 18. There are several ways to approach this problem‚ but all (when done correctly!) should give approximately the same answer. We have chosen to use the regression analysis function of an electronic spreadsheet program to calculate the alpha and beta for each security. The regressions are in the following form: Security return = alpha + (beta ( market return) + error term The results are: | |Alpha
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FIN-516 WEEK 1 – HOMEWORK ASSIGNMENT Problem Based on Chapter 14‚ Residual Dividends Middlesex Plastics Manufacturing had 2011 Net Income of $15.0 Million. Its 2012 Net Income is forecast to increase by 8%. The company’s capital structure has been 35% Debt and 65% Equity since 2010‚ and the company plans to maintain this capital structure in 2012. The company paid $3.0 Million cash dividends in 2011. The company is planning to invest in a major capital project in 2012. The capital budget
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Name: ___________________________________ Date:_____________ Period: _______________ 1. Where on the normal curve are the inflection points located? Where the slope starts to drop off at. 2. What is the standard normal distribution? A standard Normal distribution is a Normal curve with a mean of 0 and a standard deviation of 1. 3. What information does the standard normal table give? The area that falls to the left of the given z-score. 4. How do you use the standard normal table (Table
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