## a firm evaluates all of its projects by applying the IRR rule. If the required return is 14 percent, should the firm accept the following project? Year Cash Flow 0 – 165,000 1 75,000 2 72,000 3 60,000

a firm evaluates all of its projects by applying the IRR rule. If
the required return is 14 percent, should the firm accept the following project?
Year Cash Flow
0 – 165,000
1 75,000
2 72,000
3 60,000

# you have \$ 12,000 to invest in a stock portfolio. Your choices are

Stock G with an expected return of 14 percent and Stock H with an expected return of 12 percent. If your goal is to create a portfolio with an expected return of 13.25 percent, how much money will you invest in Stock G? In Stock Y?

# The Thomas Company evaluates all of its projects by using the Net

Present Value method. If the required return was 12 percent should the firm accept the project? What if the required return was 18 percent? Here are the cash flows :
Year                     Cash Flow
0                         -156,000
1                             74,000
2                             69,000
3                             56,000

# Wilson,Inc. has sales of \$62,300, costs of \$28,700, depreciation expense

of \$8,200 and interest expense of \$3,200. If the tax rate is 20 percent, what is the operating cash flow? Please show your work.

# You have \$ 53,000 on deposit with no outstanding checks or uncleared

deposits. One day you write a check for \$ 5,400 and then deposit a check for \$ 6,700. What are your disbursement, collection, and net floats?

# A random sample of 900 people was taken in Chicago to estimate the

percentage of Chicago voters that favor an end to the U.S. embargo against Cuba. The results of this survey are given as a 95% confidence interval that turns out to be 53% +- 3.4%.

a. If we had calculated a 99% confidence interval for this poll, how would the margin of error have been different? explain.
b. A second poll using the same methods, is taken of 900 people in Columbus, Ohio, which has about one-fourth as many voters as Chicago. Will the margin of error for a 95% confidence interval in the Columbus poll be larger than 3.4%, smaller than 3.4%, or about 3.4%? explain

## The divison of traffic and parking at a large university wants to

The divison of traffic and parking at a large university wants to
know the percentage of students who used the campus bus system last week. They take a random sample of four hundred students from their list of students with parking stickers and find that 20% of them have used the bus system during the past week. The results of this survey are reported as follows: “With 95% confidence, the percentage of students using the bus system lies in the range of 20% +- 4%”.
A. Identify each of the following:
Parameter:
Population:
Sample:
Sample Statistic:
Level of confidence:
Margin of Error:
Sampling frame:
B. This survey is likely to be biased because:
1) the sampling frame is not the same as the population.
2) the margin of error is too large.
3) of non response bias.

Pick one and briefly explain (including a statement of whether the problem is a type of sampling error or a type of non-sampling error).

## The following question was asked in a sample survey: Do you think

The following question was asked in a sample survey: Do you think
that the excessive restrictions placed on U.S. law enforcement agencies hampered their ability to detect the 9/11 terrorists before their attack?

Identify the correct statement with respect to the question.

The question is unclear and slanted toward a yes answer.
The question is clear and slanted toward a yes answer.
The question is unclear and slanted toward a no answer.
The question is clear and not slanted toward either a yes or no answer

# How are the operating and cash cycles of the firm different? Why are

they important? And with they have a positive effect on a firm does this mean that firm has good paying customers ?