(a) A lamp has two bulbs of a type with an average lifetime of 1800 hours. Assuming that we can model the probability of failure of these bulbs by an exponential density function with mean μ = 1800, find the probability that both of the lamp's bulbs fail within 2000 hours.
(b) Another lamp has just one bulb of the same type as in part (a). If one bulb burns out and is replaced by a bulb of the same type, find the probability that the two bulbs fail within a total of 1000 hours.
Answers
Answer:
a) 0.45
b) 0.11
Explanation:
A) P( both bulbs fail within 2000 hours ) = 0.45
Given data:
Average lifetime of bulbs = 1800 hours
mean μ = 1800
b) P( both bulbs fail within 1000 hours ) =
Attached below is a detailed solution of the given question
Related Questions
Chance, Inc. sold 5,000 units of its product at a price of $172 per unit. Total variable cost per unit is $131, consisting of $92 in variable production cost and $39 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing.
Answers
Answer:
$400,000
Explanation:
Computation for the manufacturing margin for the company under variable costing
Using this formula
Manufacturing margin= Sales - Total variable production cost
Let plug in the formula
Manufacturing margin=( 5,000*$172)- (5,000*$92)
Manufacturing margin=$860,000-$460,000
Manufacturing margin= $400,000
Therefore the manufacturing margin for the company under variable costing is $400,000
Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $3,500 from sales $201,000, variable costs $175,000, and fixed costs $29,500. If the Big Bart line is eliminated, $20,000 of fixed costs will remain. Prepare an analysis showing whether the Big Bart line should be eliminated.
Answers
Answer:
Net Income Analysis
Continue Eliminate Increase/Decrease
Sales 201,000 0 201,000
Less: Variable cost 175,000 0 175,000
Contribution margin 26,000 0 26,000
Less: Fixed expenses 29,500 20,000 9,500
Net Income -3,500 20,000 -16,500
Therefore, the Big Bart line should not be continued.
ing using a calculator) Jesse Pinkman is thinking about trading cars. He estimates he will still have to borrow $ to pay for his new car. How large will Jesse's monthly car loan payment be if he can get a -year ( equal monthly payments) car loan from the university's credit union at an APR of percent compounded monthly?
Answers
Answer:
Monthly car loan payment = $414 (Approx.)
Explanation:
Missing information;
Amount borrow = $29,000
NUmber of payment = 7 year x 12 = 84
Rate = 5.3% yearly = 0.053 / 12 monthly
Find:
Monthly car loan payment
Computation:
PV = $29,000
N = 84
r = 0.053/12
FV = 0
PV = (PMT/r)[1 – 1/(1 + r)ⁿ] + FV/(1 + r)ⁿ
29,000 = [PMT/(0.053/12)][1 – 1/(1 + 0.053/12)^84] + 0
PMT = 413.98
Monthly car loan payment = $414 (Approx.)
The discount rate is a. the rate at which the Fed lends to banks. b. the rate at which public banks lend to other public banks. c. the percentage difference between the face value of a Treasury bond and what the Fed pays for it. d. the percentage of deposits banks hold as excess reserves.
Answers
Answer:
a. the rate at which the Fed lends to banks
Explanation:
The discount rate is the interest rate that are applied for measuring the present value of future cash flows
It is the rate where the federal reserve would lends to the financial insituation or bank
So as per the given options, the option a is correct
And, the other options should be considerd as wrong or incorrect
Your company buys a computer system from IBM for $3 million and pays IBM $200,000 to install the computer system. The $3 million is on credit and your company pays $100,000 of interest on the loan in the current year. The acquisition cost of the computer system at the end of the current year will be
Answers
Answer:
$3.2 million
Explanation:
Calculation to determine what The acquisition cost of the computer system at the end of the current year will be
Using this formula
Acquisition cost=Purchase price+ Installation cost
Let plug in the morning
Acquisition cost= $3 million +$200,000
Acquisition cost=$3.2 million
Therefore The acquisition cost of the computer system at the end of the current year will be $3.2 million
Calculate the current price of a $1,000 par value bond that has a coupon rate of 6 percent, pays coupon interest annually, has 27 years remaining to maturity, and has a current yield to maturity (discount rate) of 15 percent. (Round your answer to 2 decimal places and record without dollar sig
Answers
Answer: $413.81
Explanation:
Price of a bond = Present value of coupon payments + Present value of face value
Coupon is a constant payment so is an annuity.
Coupon = 6% * 1,000 = $60
Price of bond = Present value of annuity + Present value of face value
= (Coupon * Present value interest factor of annuity (PVIFA), 27 periods, 15%) + (Face value / (1 + rate) ^ number of periods)
= (60 * 6.514) + (1,000 / (1 + 15%)²⁷
= $413.81
American Corp. is currently an all-equity firm that has 22,000 shares of stock outstanding with a market price of $27 a share. The current cost of equity is 12 percent and the tax rate is 35 percent. The firm is considering adding $225,000 of debt with a coupon rate of 6.25 percent to its capital structure. The debt will sell at par. What will be the levered value of the equity
Answers
Answer: $447,750
Explanation:
The value of a levered firm is calculated as:
= (Number of shares outstanding * Market price) + (Debt * tax rate)
= (22,000 * 27) + (225,000 * 35%)
= $672,750
Equity = Value of levered firm - Debt
= 672,750 - 225,000
= $447,750
Happy Trails, a bicycle rental company, is considering purchasing three additional bicycles. Each bicycle would cost them $249.66. At the end of the first year the increase to their revenues would be $140 per bicycle. At the end of the second year the increase to their revenues again would be $140 per bicycle. Thereafter, there are no increases to their revenues. At which of the following interest rates is the sum of the present values of the additional revenues closest to the price of a bicycle?
a. 5 percent.
b. 6 percent.
c. 7 percent.
d. 8 percent.
Answers
Answer:
D
Explanation:
We are to determine the IRR of the purchase
The internal rate of return is a capital budgeting method that is used to determine the profitability of a project.
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
Cash flow in Y0 = -249.66
Cash flow in Y1 = 140
Cash flow in Y2 = 140
IRR = 8
To determine IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button
XYZ has two divisions: South and West. Overall net operating income is $26,900. South Division's segment margin is $42,800 and West Division's segment margin is $29,900. What is the amount of the common fixed expense not traceable to the individual divisions?
a. $45,800.
b. S56800.
с.$69,700.
d. $72,700.
Answers
Answer:
a. $45,800.
Explanation:
The computation of the common fixed expense not traceable is given below
Combined segment margin of two divisions ($42,800 + $29,900) $72,700
Less: net income -$26,900
Non traceable fixed cost $45,800
Hence, the amount of the common fixed expense not traceable to the individual divisions is $45,800
Therefore the option a is correct
You want to retire exactly 30 years from today with $1,950,000 in your retirement account. If you think you can earn an interest rate on 10.07 percent compounded monthly, how much must you deposit each month to fund your retirement
Answers
Answer:
Monthy deposit= $849.78
Explanation:
Giving the following information:
Future value (FV)= $1,950,000
Number fo periods (n)= 30*12= 360
Interest rate (i)= 0.1007/12= 0.008392
To calculate the monthly deposit, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (1,950,000*0.008392) / [(1.008392^360) - 1]
A= $849.78
Nut and Bolt guy Inc, sells nuts, bolts, fasteners and other related equipment. The CFO projects that net FCF for the next three years will be $11,000, $12,500 and $16,000, respectively. After that, the cash flows are expected to increase by 4.5 percent annually. What is the value of the firm if the WACC is 12.2%?
Answers
Answer:
$184791
Explanation:
The calculation of the value of the firm is given below:
Year Future Cash Flow PVF at 12.2% PV of Cash Flow
1 11000 0.891 9801
2 12500 0.794 9925
3 16000 0.708 11328
Total 31054
Present Value of Terminal Value
= [16000 × (1 + 0.045) ÷ 0.122 - 0.045] × 0.708
= [16720 ÷ 0.077] × 0.708
= 153737
Now
value of Firm = 31054 + 153737
= $184791
A project has an initial cost of $44,000. Expected cash flows as a result of this project are projected as follows. Calculate the payback period for this project. Assume a discount rate of 9%.
Answers
Answer:
3.5 year
Explanation:
The computation of the payback period is given below:
Year Cash Inflow Cumulative Cash Inflow
1 $10,000 $10,000
2 $10,000 $20,000
3 $15,000 $35,000
4 $18,000 $53,000
Now the payback period is
= 3 year + ($53,000 - $44,000) ÷ $18,000
= 3 year + 0.5
= 3.5 year
True or false? if false explain. An internally held public debt is like a debt of the left hand owed to the right hand.
Answers
Answer:True
Explanation: AN internally held debt is like a debt of the left hand owned to the right hand. This is a true statement. Left hand and right hand is ib the same body. Similarly,internal debit is taken from public of one's own nation. Just like things are in left hand or right hand, it remains in same person. Similarly, internal debit is borrowed from the people of the nation itself and is held within the nation.
If the State of California raised the average state consumer sales tax rate from 9.25 percent to 15 percent, then this sales tax will have its heavist impact on and raise the marginal cost curves for California businesses.
a. True
b. False
Answers
Answer: False
Explanation:
Consumer sales tax is not charged to businesses but rather to the customers through a business. The tax would therefore increase the prices of goods and services for consumers and not the businesses.
The businesses would therefore not see their marginal cost curves increase. They could still be affected however, by Californians demanding less goods and services because it is now more expensive for them on account of the new sales tax.
Vaughn Manufacturing is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $24 and Vaughn would sell it for $51. The cost to assemble the product is estimated at $14 per unit and the company believes the market would support a price of $61 on the assembled unit. What decision should Vaughn make?
Answers
Answer:
Sell before assembly, The company will be better off by $4 Per Unit
Explanation:
Calculation to determine what decision should Vaughn make
PROFIT BEFORE ASSEMBLY
Profit = Sale price - Cost price
Profit= $51 - $24
Profit= $27 Per Unit
PROFIT AFTER ASSEMBLY
First step is calculate the Cost of Assembled Product
Cost of Assembled Product =$24 + $14
Cost of Assembled Product= $38 Per Unit
Now let determine the profit
Profit = Sale price - Cost price
Profit= $61 - $38
Profit = $23 Per Unit
Now let Determine what decision should Vaughn make
Hence, the Profit by selling assembled product is LOWER than selling the Unassembled product by :
$27 Per Unit - $23 Per Unit
= $4 Per Unit
Therefore the decision that Vaughn should make is: Sell before assembly, The company will be better off by $4 Per Unit
Inga invested part of her $6000 savings in common stock and the rest in rare stamps. At the end of the year, she realized a gain of 9% on the stock and 12%on the stamps. If her savings now amounts to $6615, how much did she invest in stamps
Answers
Answer:
The amount Inga invested in stamps is $2,500.
Explanation:
Let x represents the amount invested in common stock. Therefore, we have:
Amount invested in common stock = x
Amount invested in stamps = 6000 - x
Rc = Rate of gain from common stock = 9%, or 0.09
Rs = Rate of gain from common stock = 12%, or 0.12
Amount of saving now = $6615
Therefore, we have
Amount of saving now = (x * (1 + Rc)) + ((6000 - x) * (1 + Rs)) ………….. (1)
Substituting all the relevant values into equation (1) and then solve for x, we have:
6615= (x * (1 + 0.09)) + ((6000 - x) * (1 + 0.12))
6615 = (x * 1.09) + ((6000 - x) * 1.12)
6615 = 1.09x + (6720 - 1.12x)
6615 = 1.09x + 6720 - 1.12x
6615 - 6720 = 1.09x - 1.12x
-105 = -0.03x
x = -105/-0.03
x = 3,500
Therefore, we have:
Amount invested in stamps = 6000 - x = $6,000 - $3,500 = $2,500
Therefore, the amount Inga invested in stamps is $2,500.
Why do mortgage brokers normally have no risk in the mortgage process? A. The broker usually does not loan the money. B. The mortgage broker doesn't sell you the property.
C. The mortgage broker simply brings the home buyer and the lender together. D. All of the above
Answers
Answer
D, all of the above.
Explanation:
Assume the marginal tax rate is 10% for the first $20,000 of taxable income, 25% for taxable income from $20,001 to $50,000, and 35% for taxable income above $50,000. If Mr. Smith had taxable income of $80,000, how much tax does he owe
Answers
Answer:
the tax amount is $20,000
Explanation:
The computation of the tax amount is given below:
= 10% of $20,000 + ($50,000 - $20,001) × 25% + ($80,000 - $50,000) × 35%
= $2,000 + $7,499.75 + $10,500
= $19,999.75
= $20,000
hence, the tax amount is $20,000
The same should be considered and relevant too
three (3) State taxes and briefly describe each
Answers
Earn: individual income taxes, corporate income taxes, payroll taxes, and capital gains taxes;
Buy: sales taxes, gross receipts taxes, value-added taxes, and excise taxes;
Own: property taxes, tangible personal property taxes, estate, and inheritance taxes, and wealth taxes.
g. provides the following information for 20X8: Net income $260,000 Market price per share of common stock $60 per share Dividends paid $200,000 Common stock outstanding at Jan. 1, 2018 150,000 shares Common stock outstanding at Dec. 31, 2018 230,000 shares The company has no preferred stock outstanding. Calculate the price/earnings ratio of common stock.
Answers
Answer:
53.09
Explanation:
The price/earnings ratio of common stock is an investment ratio that compares the current price of the stock to its earnings per share, in a bid to assess the stock performance relative to its earnings
share price=$60
earnings per share=net income/year-end shares outstanding
net income=$260,000
year-end outstanding shares=230,000
earnings per share=$260,000/230,000
earnings per share=$1.13
price/earningsratio=$60/$1.13
price/earningsratio=53.09
The first three cars I bought all fell apart around 50,000 miles. It was called planned obsolescence and no one seemed to care until companies entered the market and promised 70,000, then 80,000, and finally 100,000 warranties. What sets a great car apart from a good one now is not the quality, which is assumed, but performance, safety and fuel economy. A car that can achieve all three is highly sought after. In the automotive market, performance, safety and fuel economy are sterling examples of:
Answers
Answer:
Order Winners
Explanation:
Order winners basically mean the winning attributes that customers will seek in order to successfully buy a product.
This is in fact because a customer's decision in buying a product is based on the value for money, so things such as price, availability, performance, and design are things to be considered by customers before deciding on the product.
As in the case above, the winning attributes in making a car great are performance, safety, and fuel economy. If such is found in a car then it would lead the car to be highly sought by the customers.
type of power based on manager's ability to influence employees with something of value to them.
Answers
Answer:
incentive or reward
Explanation:
incentive pay, time and a half pay for overtime are examples
Rev. Elvin Snider is the ordained minister at Crossroads United Methodist Church. His salary on his Form W-2 is $20,000. He also receives a $12,000 housing allowance. His housing costs for the year are $14,000. What is Rev. Snider's self-employment income?
Answers
Answer: $32000
Explanation:
It should be noted that ministers or clergymen can exclude the home rental value or housing cost from the calculation of the gross income
Rev. Snider's self-employment income
Therefore, in this case, Rev. Snider's self-employment income will be:
Salary = $20,000
Add: Housing allowance = $12000
Total = $32000
Cucina Corp. signed a new installment note on January 1, 2018, and deposited the proceeds of $50,000 in its bank account. The note has a three-year term, compounds 5 percent interest annually, and requires an annual installment payment on December 31. Cucina Corp. has a December 31 year-end and adjusts its accounts only at year-end. Required:
Answers
Question Completion:
Required:
1.Use an online application, such as the loan calculator with annual payments at mycalculators.com, to generate an amortization schedule. Enter that information into an amortization schedule with the following headings: Year, Beginning Notes Payable, Interest Expense, Repaid Principal on Notes Payable, and Ending Notes Payable.
2.Prepare the journal entries on (a) January 1, 2018, and December 31 of (b) 2018, (c) 2019, and (d) 2020.
3.If Cucina Corp.’s year-end were March 31, rather than December 31, prepare the adjusting journal entry it would make for this note on March 31, 2018?
Answer:
Cucina Corp.
1. Annual Amortization Schedule
Year Beginning Interest Expense Repaid Principal Ending Notes
Notes Payable on Notes Payable Payable
1 $50,000.00 $2,140.23 $15,842.25 $34,157.68
2 $34,157.68 $1,329.68 $16,652.80 $17,504.84
3 $17,504.84 $477.71 $17,504.77 $0.00
2. (a) January 1, 2018
Debit Cash $50,000
Credit Installment Note Payable $50,000
To record the issuance of the installment note.
December 31 of
(b) 2018
Debit Interest Expense $2,140.23
Debit Installment Note Payable $15,842.25
Credit Cash $17,982.48
To record the first installment repayment, including interest.
(c) 2019
Debit Interest Expense $1,329.68
Debit Installment Note Payable $16,652.80
Credit Cash $17,982.48
To record the second installment repayment, including interest.
(d) 2020
Debit Interest Expense $477.71
Debit Installment Note Payable $17,504.77
Credit Cash $17,982.48
To record the third and final installment repayment, including interest.
3. (b) 2018
Debit Interest Expense $625
Credit Interest Payable $625
To accrue interest expense for the year ($50,000 * 5% * 3/12)
Explanation:
a) Data and Calculations:
Installment note payable obtained on January 1, 2018 = $50,000
Period of note payable = 3 years
Interest rate = 5% compounded annually
Annual interest payment = December 31
Suppose a chair manufacturer is producing in the short run (with its existing plant and equipment). The manufacturer has observed the following levels of production corresponding to different numbers of workers:
Number of Workers Number of Chairs
1 10
2 18
3 24
4 28
5 30
6 28
7 25
a. Calculate the marginal and average product of labor for this production function.
b. Does this production function exhibit diminishing returns to labor
Answers
Answer:
(a)
MP = TPn - TPn-1
AP = TP/Q
No. of workers No. of chairs MP AP
1 10 - 10
2 18 8 9
3 24 6 8
4 28 4 7
5 30 2 6
6 28 - 2 4.6
7 25 -3 3.5
(b) Yes, this production function exhibits diminishing returns to labor. As we increase the number of laborers, the output per worker falls. we will see that the AP is falling with the rise parturient.
What’s the best major among these and why plz .
Business management
Business marketing
Business banking
Answers
Answer:
With a strong focus on your employability, our MSc Strategic Business Management is for those wanting an in-depth knowledge and a critical understanding of the key aspects of strategic business and management in a global context. Whether you are a manager, consultant, analyst, or want to pursue a career as an entrepreneur, this one year postgraduate degree helps develop the most important concepts and real world practical models to enhance your career in a rapidly changing work environment.
Explanation:
Business Degree In Marketing
Business Or Marketing Degree
Degree In Marketing
Degree In Marketing Salary
Degree In Marketing Management
Bachelor Degree In Marketing
Degree In Fashion Marketing
Master Degree In Marketing
Bs Degree In Marketing
Masters Degree In Marketing
Online Degree In Marketing
Graduate Degree In Marketing
Degree In Internet Marketing
A bicycle repair company conducted segmentation research and then targeted their direct mail coupons for a first bike tune-up to that identified customer segment. What basic question did targeting and segmentation answer for the company
Answers
Answer:
Who am I trying to reach?
Explanation:
Targeting and segmentation is the process by which a company focuses marketing activities regarding a particular product to a defined customer profile.
Certain criteria like income, age, location, culture and so on can be used as a basis for segmentation.
Basically the question that segmentation and targeting answers is - Who am I trying to reach?
In the given scenario the bicycle repair company conducted segmentation research and then targeted their direct mail coupons for a first bike tune-up to that identified customer segment.
So they answered who they want to sell to.
he preemptive right is important to shareholders because it a. protects bondholders, and thus enables the firm to issue debt with a relatively low interest rate. b. allows managers to buy additional shares below the current market price. c. protects the current shareholders against a dilution of their ownership interests. d. is included in every corporate charter.
Answers
Answer:
c. protects the current shareholders against a dilution of their ownership interests.
Explanation:
In the case when the preemptive right should be significant for the shareholders so it basically protect the present shareholders that are opposed to the dilution with respective to the ownership interest
Therefore the option c is correct
And, the other options seems wrong
Suppose potential income is $80 billion, actual income is $40 billion, and expenditures don't vary with income. If the actual budget deficit is $8 billion and the marginal tax rate is 20 percent, the cyclical deficit:________
a) is $4 billion.
b) is $8 billion.
c) cannot be determined from the given information.
d) is between zero and $8 billion.
Answers
Because I 4-(5-22)-2
Elson co, needs to raise debt and for this purpose issued two different bonds, Bond A and Bond B. Both bonds have 20 years to maturity with a face value of $20000. Bond A will make no coupon payment over the entire life, however Bond B is a semiannual coupon bond. It will make first coupon payment of $1100 at sixth year semiannually for the next 8 years. After that it will make coupon payment of $1400 for the rest of its remaining life. Find the price of Bond A and B if the required rate of return on these bonds is 7 percent compounded semiannually.
Answers
Answer:
The right solution is "$20.733.16".
Explanation:
According to the question,
Face value,
= $20000
Rate (r),
= .035
Bond A:
= [tex]\frac{Face \ value}{(1+r)^n}[/tex]
= [tex]\frac{20000}{(1+.035)^{40}}[/tex]
= [tex]5051.45[/tex] ($)
Bond B:
= [tex]\frac{1100\times 12.0941}{(1+.035)^{10}} + \frac{1400\times 10.9205}{(1+.035)^{26}} + \frac{20000}{(1+.035)^{40}}[/tex]
= [tex]9431.11+6250.6+5051.45[/tex]
= [tex]20733.16[/tex] ($)
