Choose the verb in parentheses that correctly completes each of the sentences on the following page.

EXAMPLE: (Has, Have) you or your sister ever been in a play? Have

We're going to see whether the PTA (has, have) any resources available for a project like this.

The gross domestic product (GDP) for the United States in 2006 was $13.06 trillion, and the GDP per person was$43,800. Use order of magnitude to approximate the population of the United States in 2006.

Justify Use a, b, and c to determine the truth value of " a or ( b and c )".
a: New York City is the most populous city in the United States. b: Florida is the most northwestern of all states. c: The first president of the United States was George Washington.

Following is information on two alternative investments being considered by Tiger Co. The company requires a 4% return from its investments.

$$\begin{array}{lc} &\textbf{Project X1}&\textbf{Project X2}\\[3pt] \text{Initial investment}&\text{\$(80,000)}&\text{\$(120,000)}\\ \text{Expected net cash flows: Year 1}&\text{\hspace{5pt}25,000}&\text{\hspace{10pt}60,000}\\ \text{\hspace{108pt} Year 2}&\text{\hspace{5pt}35,500}&\text{\hspace{10pt}50,000}\\ \text{\hspace{108pt} Year 3}&\text{\hspace{5pt}60,500}&\text{\hspace{10pt}40,000}\\ \end{array}$$

Assume the company requires a 12% return on its investments. Compute each project's (a) net present value and (b) profitability index. (Round present value calculations to the nearest dollar.) Express the profitability index as a percentage (rounded to two decimal places). If the company can choose only one project, which should it choose?

Open and test the imageviewer0-4 project. The folder for this chapter’s projects also includes a folder called images. Here, you can find some test images you can use. Of course, you can also use your own images.

The neurons that synthesize the neurotransmitter serotonin are mainly located in the _____, and their axons project _____.

a. substantia nigra, the basal ganglia

b. raphe nucleus, widely around the brain

c. locus coeruleus, to the cerebral cortex

d. basal forebrain, both up to the brain and down to the spinal cord

A project has been in operation for 5 years. Calculate the rate of return and state whether it has been an acceptable rate of return

Allied Food Products is considering expanding into the fruit juice business with a new fresh lemon juice product. Assume that you were recently hired as assistant to the director of capital budgeting, and you must evaluate the new project.

The lemon juice would be produced in an unused building adjacent to Allied's Fort Myers plant; Allied owns the building, which is fully depreciated. The required equipment would cost $\$ 200,000$, plus an additional $\$ 40,000$ for shipping and installation. In addition, inventories would rise by $\$ 25,000$, while accounts payable would increase by $\$ 5,000$. All of these costs would be incurred at $t=0$. By a special ruling, the machinery could be depreciated under the MACRS system as $3$-year property. The applicable depreciation rates are $33 \%, 45 \%, 15 \%$, and $7 \%$.

The project is expected to operate for $4$ years, at which time it will be terminated. The cash inflows are assumed to begin $1$ year after the project is undertaken, or at $t=1$, and to continue out to $t=4$. At the end of the project's life $(t=4)$, the equipment is expected to have a salvage value of $\$ 25,000$.

Unit sales are expected to total $100,000$ units per year, and the expected sales price is $\$ 2.00$ per unit. Cash operating costs for the project (total operating costs less depreciation) are expected to total $60 \%$ of dollar sales. Allied's tax rate is $40 \%$, and its WACC is $10 \%$. Tentatively, the lemon juice project is assumed to be of equal risk to Allied's other assets.

You have been asked to evaluate the project and to make a recommendation as to whether it should be accepted or rejected. To guide you in your analysis, your boss gave you the following set of tasks/ questions:

Assume that inflation is expected to average $5 \%$ over the next $4$ years and that this expectation is reflected in the WACC. Moreover, inflation is expected to increase revenues and variable costs by this same $5 \%$. Does it appear that inflation has been dealt with properly in the initial analysis to this point? If not, what should be done and how would the required adjustment affect the decision?

With respect to the IASB conceptual framework project:

a. work is being conducted to produce separate discussion papers.

b. work is being conducted with the FASB

c. work is being conducted to result in a discussion paper covering all the identified areas.

d. the framework is now completed.

In the early days of the United States, Washington, D.C., was not the capital.

A decision has been made to perform certain repairs on the outlet works of a small dam. For a particular 36-inch gate valve, there are three available Alternatives: A. Leave the valve as it is. B. Repair the valve. C. Replace the valve. If the valve is left as it is, the probability of a failure of valve seats, over the life of the project, is 60%; the probability of failure of the valve stem is 50%; and of failure of the valve body is 40%. If the valve is repaired, the probability of a failure of the seats, over the life of the project is 40%; of failure of the valve stem is 30%; and of failure of the valve body is 20%. If the valve is replaced, the probability of a failure of the seats, over the life of the project, is 30%; of failure of the stem is 20%; and of failure of the body is 10%. The present worth of cost of future repairs and service disruption of failure of the seats is $10,000; the present worth of cost of a failure of the stem is$20,000; the present worth of cost of a failure of the body is $30,000; The cost of repairing the valve now is$10,000; and of replacing it is $20,000. If the criterion is to minimize expected costs, which alternative is best?

Write an algebraic expression to model the situation. The freshman class will be selling carnations as a class project. What is the class's income after it pays the florist a flat fee of$200 and sells x carnations for$2 each? Will paying the florist increase or decrease their income? By how much?

Match the terms with the definitions.

An organized strategy for controlling financial loss from pure risks and insurable risks

a. deductible

b. risk assessment

c. risk assumption

d. risk avoidance

e. risk management

f. risk reduction

g. risk shifting

(Class Project) Have each student in the class respond to the question "Which carbonated soft drink do you most prefer?" so that the instructor can tally the results into a summary table.

a. Convert the data to percentages and construct a Pareto chart.

b. Analyze the findings.