(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.

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.

All techniques, conflicting rankings Nicholson Roofing Materials, Inc., is considering two mutually exclusive projects, each with an initial investment of $\$ 150,000$. The company's board of directors has set a maximum 4-year payback requirement and has set its cost of capital at $9 \%$. The cash inflows associated with the two projects are shown in the following table.

	Cash inflows (CF_(t))
Year	Project A	Project B
1	$45,000	$75,000
2	45,000	60,000
3	45,000	30,000
4	45,000	30,000
5	45,000	30,000
6	45,000	30,000

e. Rank the projects by each of the techniques used. Make and justify a recommendation.

The following estimates (in $1000 units) have been developed for a security system upgrade at Chicago’s O’Hare Airport. (a) Calculate the conventional B/C ratio at a discount rate of 10% per year. Is the project justified? (b) Determine the minimum first cost that is possible to render the project just economically unjustified.$ $$ \begin{array}{lr} \text { Item } & \text { Cash Flow } \\ \hline \text { First cost, } \$ & 13,000 \\ \text { AW of benefits, } \$ \text { per year } & 3,800 \\ \text { FW of disbenefits, year } 20, \$ & 6,750 \\ \text { M&O costs, } \$ \text { per year } & 400 \\ \text { Life, years } & 20 \\ \hline \hline \end{array} $$ $

United Bankshores, Inc. wishes to evaluate three capital investment projects by using the net present value method. Relevant data related to the projects are summarized as follows:

$$\begin{array}{lccc} & \textbf{Branch} & \textbf{Computer} & \textbf{Install}\\ & \textbf{Office} & \textbf{System} & \textbf{Internet}\\ & \textbf{Expansion} & \textbf{Upgrade} & \textbf{Bill-Pay}\\ \hline \text{Amount to be invested . . . . . . . . . . . . . . . . . . . . . } & \$700,000 & \$475,000 & \$280,000\\ \text{Annual net cash flows:}\\ \quad \text{Year 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . } & 350,000 & 250,000 & 160,000\\ \quad \text{Year 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . } & 325,000 & 225,000 & 110,000\\ \quad \text{Year 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . } & 300,000 & 200,000 & 80,000 \end{array}$$

Instructions $1$. Assuming that the desired rate of return is $15 \%$, prepare a net present val analysis for each project. Use the present value of $\$ 1$ table.
$2$. Determine a present value index for each project. Round to two decimal places.
$3$. Which project offers the largest amount of present value per dollar investment? Explain.

A vocabulary word appears in italics in the sentence or short passage below. Think about how the word is used in the passage. Then write a definition for the vocabulary word.

We hoped an informal meeting would lead to a $dialogue$ between union and management before a strike began.

The population density in China is 365.3 persons per square mile. The population density in the United States is approximately one-fourth of the density in China. Find the population density in the United States.

Underline the introductory element in each of the following sentences. Then , add commas where necessary.

Example 1. $\underline{\text{During the course of this project}}$, we will see many interesting things.

9. In her junior year of college she decided to become a doctor.

The United States claims that Canada subsidizes the production of softwood lumber and that imports of Canadian lumber damage the interests of U.S. producers. The United States has imposed a tariff on Canadian imports to counter the subsidy. Canada is thinking of retaliating by refusing to export water to California. Table 1 shows a payoff matrix for the game that the United States and Canada are playing.

What is the United States’ best strategy? What is Canada’s best strategy? What is the outcome of this game? Explain.

Greengage, Inc., a successful nursery, is considering several expansion projects. All of the alternatives promise to produce an acceptable return. Data on four possible projects are provided in below table.

$$\begin{array}{cccc} \text { Project } & \begin{array}{c} \text { Expected } \\ \text { return } \end{array} & \text { Range } & \begin{array}{c} \text { Standard } \\ \text { deviation } \end{array} \\ \hline \text { A } & 12.0 \% & 4.0 \% & 2.9 \% \\ \text { B } & 12.5 & 5.0 & 3.2 \\ \text { C } & 13.0 & 6.0 & 3.5 \\ \text { D } & 12.8 & 4.5 & 3.0 \end{array}$$

a. Which project is least risky, judging on the basis of range?

Stained Glass An artist wants to use stained glass to cover the area in the rectangle and semicircle at right. If the glass he wants to use comes in 8-by-10-inch panes, what is the minimum number of panes he will need to buy to complete his project?

Group Project: Collect the shoe size of everyone in the class. Use the sample means and variances and the types of plots presented in this chapter to summarize any features that draw a distinction between the distributions of shoe sizes for males and females. Do the same for the height of everyone in the class.

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?

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.