CST 182 Final Exam – Which of the following is a difference between project

CST 182 Final Exam

Q1. Which of the following is a difference between project management and portfolio management?

a. Project management involves making wise investment decisions whereas portfolio management does not.

b. Portfolio management is an easy task whereas project management is a more difficult task.

c. Portfolio management asks questions like, “Are we carrying out projects efficiently?” whereas project management asks questions such as “Are we investing in the right areas?”

d. Project management addresses specific, short-term goals whereas portfolio management focuses on long-term goals.

Q2. Project procurement management primarily involves identifying stakeholder needs while managing their engagement throughout the life of the project.

a. True

b. False

Q3. Project managers work with the project sponsors to define success for particular projects.

a. True

b. False

Q4. Which of the following questions reflect the strategic goals of project portfolio management?

a. Are we carrying out projects well?

b. Are projects on time and on budget?

c. Are we investing in the right areas?

d. Do stakeholders know what they should be doing?

Q5. Which of the following project management knowledge areas is an overarching function that affects and is affected by the different knowledge areas?

a. Project cost management

b. Project stakeholder management

c. Project integration management

d. Project communications management

Q6. Which of the following statements is true of project management?

a. It is a simple discipline with a limited scope.

b. It has specific tools which work universally across all kinds of projects.

c. It does not guarantee successes for all projects.

d. Its framework consists solely of project management knowledge areas.

Q7. Which of the following best defines the role of leaders?

a. They focus on short-term objectives.

b. They work on achieving primarily tactical goals.

c. They work solely toward day-to-day details of meeting specific tasks.

d. They inspire people to reach goals.

Q8. Which of the following refers to a set of principles that guides decision making based on personal values of what is considered right and wrong?

a. Ethics

b. Civics

c. Laws

d. Politics

Q9. The only responsibility of a project manager is to meet the specific scope, time, and cost goals of a project.

a. True

b. False

Q10. Enterprise project management softwares are also known as _____ tools of project management software.

a. baseline

b. midrange

c. low-end

d. high-end

Q11. Which of the following project management knowledge areas primarily involve generating, collecting, disseminating, and storing project information?

a. Project cost management

b. Project procurement management

c. Project time management

d. Project communications management

Q12. Galaxy, a construction company, buys a particular brand of tiles manufactured by Tiles and Floors, an eco-friendly tile manufacturing company. However, Tiles and Floors has declared bankruptcy and closed down. At present, Galaxy is facing a crisis because there are no other manufacturers in the market that supplies eco-friendly tiles. Which of the following constraints is Galaxy currently facing?

a. Resources

b. Time

c. Scope

d. Cost

Q13. Project _____ management ensures that the project will satisfy the stated or implied needs for which it was undertaken.

a. cost

b. time

c. risk

d. quality

Q14. The project time management knowledge area maps to the _____ process group through the activity of schedule control.

a. initiating

b. planning

c. executing

d. monitoring and controlling

Q15. Examples of _____ processes include acquiring and developing the project team, performing quality assurance, distributing information, managing stakeholder expectations, and conducting procurements.

a. monitoring and controlling

b. executing

c. planning

d. initiating

Q16. The improvement of the product and process in the Scrum method is discussed at the _____.

a. sprint reflection meeting

b. sprint review meeting

c. kick-off meeting

d. daily Scrum meeting

Q17. _____ is a planning process that is within the Project Scope Management knowledge area.

a. Schedule development

b. Developing a project management plan

c. Creation of a WBS

d. Quality planning

Q18. Which of the following is true about the agile method?

a. It is often used when a project team can express the scope early in the product life cycle.

b. It is used when a project team wants to provide a potentially shippable product earlier rather than later.

c. It uses several iterations or deliveries of software instead of waiting until the end of the project to provide a product.

d. It is used when project teams want to use the predicative approach to a project.

Q19. Which of the following activities is a part of the planning process of the Scrum?

a. Determining how many sprints will compose each release

b. Demonstrating the product during a sprint review meeting

c. Completing tasks each day during sprints

d. Creating sprint backlog

Q20. _____ are an output of the executing process of project integration management.

a. Deliverables

b. Issue logs

c. Resource calendars

d. Enterprise environmental factor updates

Q21. The project stakeholder management knowledge area maps to the ______ process group by identifying stakeholders.

a. initiating

b. planning

c. executing

d. monitoring and controlling

Q22. _____ processes include defining and authorizing a project or project phase.

a. Initiating

b. Planning

c. Executing

d. Monitoring and controlling

Q23. The main purpose of project plans is to _____.

a. schedule management plans

b. define project scope

c. estimate activity resources

d. guide project execution

Q24. A sprint review is a meeting in which the team demonstrates to the product owner what it has completed during the sprint.

a. True

b. False

Q25. _____ processes include devising and maintaining a workable scheme to ensure that the project addresses the organization’s needs.

a. Initiating

b. Planning

c. Executing

d. Monitoring and controlling

Q26. The kick-off meeting is always held before the business case and project charter are completed.

a. True

b. False

Q27. Organizational process assets update is the output of the closing process of _____.

a. project integration management

b. project quality management

c. project procurement management

d. project time management

Q28. Which of the following best describes a kill point in the project life cycle?

a. The period of time given to managers during the feasibility phases to decide on the cost, quality, and time constraints for the project

b. A review of the status of a project at each phase of development to determine if it should be continued, redirected, or terminated

c. The point of time in the project lifecycle after which it is impossible to terminate a running project

d. The final submission of the project deliverables after which the project is terminated

Q29. In Rizzati Corp, vice presidents in departments such as engineering, manufacturing, IT, and human resources report directly to the chief executive officer and undertake their tasks independently of each other. The staffs of these departments have specialized skills in their respective disciplines.Rizatti Corp can be said to have a _____ organizational structure.

a. project

b. symbolic

c. matrix

d. functional

Q30. A preliminary or rough cost estimate is developed in the _____ phase of the project life cycle, and an overview of the work involved is created.

a. implementation

b. acquisition

c. concept

d. close-out

Q31. The symbolic perspective of an organization:

a. focuses on different groups’ roles and responsibilities to meet the goals and policies set by top management.

b. views the organization as coalitions composed of varied individuals and interest groups.

c. focuses on providing harmony between the needs of the organization and the needs of people.

d. focuses on the meanings of the culture, language, traditions, and image of the organization.

Q32. Which of the following is true of virtual teams?

a. It is easier for a virtual team to build relationships and trust.

b. Negative incentives do not impact virtual team members.

c. It is important to select team members carefully.

d. As they never meet, virtual teams do not have conflicts.

Q33. _____ refers to a problem-solving approach that requires defining the scope of a system, dividing it into its components, and then identifying and evaluating its problems, opportunities, constraints, and needs.

a. Linear programming

b. Independent component analysis

c. Principal component analysis

d. Systems analysis

Q34. In a _____ organizational structure, personnel often report to both a functional manager and one or more project managers.

a. project

b. symbolic

c. matrix

d. functional

Q35. The _____ perspective on organizations assumes that organizations are coalitions composed of varied individuals and interest groups.

a. political frame

b. symbolic frame

c. structural frame

d. human resources frame

Q36. The _____ model uses an approach in which developers work with an evolving prototype, using tools such as computer-aided software engineering, joint requirements planning, and joint application design to facilitate rapid prototyping and code generation.

a. incremental build life cycle

b. waterfall life cycle

c. RAD life cycle

d. spiral life cycle

Q37. In organizational culture, people focus refers to _____.

a. the degree to which the organization monitors and responds to changes in the external environment

b. the degree to which rules, policies, and direct supervision are used to oversee and control employee behavior

c. the degree to which management’s decisions take into account the effect of outcomes on employees within the organization

d. the degree to which employees are encouraged to be aggressive, innovative, and risk seeking

Q38. Which of the following is true of the agile approach to software development?

a. In the agile method, requirements and solutions evolve through collaboration.

b. An agile approach sets scope goals, but leaves time and cost goals flexible.

c. Agile is a predictive model of software development.

d. In the agile approach, requirements must be clearly expressed early in the life cycle.

Q39. Which of the following is true of a matrix organizational structure?

a. In a matrix organizational structure, employees are organized into departments according to their skills, and there is little interaction between employees from different departments.

b. Project managers in matrix organizations have staff from only a single functional area working on their projects.

c. In a strong matrix organizational structure, the project manager controls the project budget and has moderate to high authority.

d. A matrix organizational structure is hierarchical, but instead of functional managers reporting to the CEO, program managers report to the CEO.

Q40. The _____ perspective of an organization focuses on different groups’ roles and responsibilities in order to meet the goals and policies set by top management.

a. structural frame

b. human resources frame

c. political frame

d. symbolic frame

Here’s the SOLUTION

Posted in Homework Help | Comments Off

CST 115 Final Exam – When dealing with publicly accessible

CST 115 Final Exam

Question:Q1. When dealing with publicly accessible information sources, be sure to use information from several unrelated sources to balance the biases of each source.

a. true

b. false

Q2. Although not a formal UP discipline, systems evaluation and ____ is an important group of activities that accounts for much of the long-range system cost.

a. integration

b. maintenance

c. design

d. coordination

Q3. A large organization with a substantial investment in computer, network, and software technology usually has one high-level manager with the title ____.

a. chief enterprise architect (CEA)

b. chief information officer (CIO)

c. information technology officer (ITO)

d. chief systems architect (CSA)

Q4. End users use ____ to perform specific tasks, such as processing customer orders or developing and formatting documents and financial analyses.

a. middleware

b. application software

c. system software

d. design software

Q5. The ____ discipline of the UP includes all activities for building, acquiring, and integrating application software components.

a. implementation

b. design

c. architecture

d. requirements

Q6. A ____ consists of hardware and software components that enable users and computer systems to share information, software, and hardware resources.

a. computer system

b. computer network

c. computer environment

d. computer platform

Q7. ____ physics describes the behavior of matter at a subatomic level.

a. Einsteinian

b. Newtonian

c. Relativity

d. Quantum

Q8. A machine capable of addition can perform multiplication by executing the addition function multiple times.

a. true

b. false

Q9. In a modern digital computer, data is represented by groups of ____.

a. qubits

b. photons

c. bits

d. waves

Q10. The ____ software layer has utility programs used by system management and application programs to perform common functions

a. system management

b. system services

c. machine independent

d. machine dependent

Q11. The CPU contains a few internal storage locations called ____, each capable of holding a single instruction or data item.

a. the ALU

b. registers

c. shifters

d. the compiler

Q12. Workstation hardware capabilities depend on the resources being shared and the number of simultaneous users.

a. true

b. false

Q13. Scientific and floating-point notation is far more complex than integer data formats.

a. true

b. false

Q14. A(n) ____ is a set of related data values.

a. pointer

b. list

c. array

d. record

Q15. The multiplier that describes the difference between one position and the next is the ____ of the numbering system.

a. base

b. mantissa

c. power

d. exponent

Q16. ____ occurs when the absolute value of a negative exponent is too large to fit in the bits allocated to store it.

a. Rounding

b. Rotation

c. Overflow

d. Underflow


Q17. The accuracy, or precision, of data format representation increases with ____.

a. the size of the data word

b. the sign of the data format

c. the number of data bits used

d. the position of the radix

Q18. The fractional portion of a real number is represented by digits to the right of the ____.

a. radix point

b. mantissa

c. exponent

d. base

Q19. A(n) ____ is a data structure that uses pointers so that list elements can be scattered among nonsequential storage locations.

a. array

b. queue

c. linked list

d. stack

Q20. A ____ instruction copies data bits to storage locations and can copy data between any combination of registers and primary storage locations.

a. JUMP

b. LOAD

c. STORE

d. MOVE

Q21. Compared with CISC processors, RISC processors are efficient at executing programs that do many of the functions complex instructions are designed for.

a. true

b. false

Q22. An 8-bit op code provides 256 possible instructions numbered 0 through 255.

a. true

b. false

Q23. A(n) ____ directs the CPU to route electrical signals representing data inputs through predefined processing circuits that implement the appropriate function.

a. operation

b. process

c. instruction

d. cycle

Q24. ____ is the flow of electrons from one place or device to another.

a. Electrical voltage

b. Electrical current

c. Electrical resistance

d. Electrical conduction

Q25. The ____ section of the CPU performs all computation and comparison operations.

a. register

b. ALU

c. shifter

d. control unit

Q26. Low voltage circuits are less susceptible to damage from voltage surges and static electricity.

a. true

b. false

Q27. Magnetic tape and disk are considered volatile storage media.

a. true

b. false

Q28. Magnetic disk drives have an advantage over SSDs in power consumption.

a. true

b. false

Q29. The ____ is the device or substance that actually holds data.

a. storage device

b. storage medium

c. storage method

d. storage speed

Q30. ____ is the sum of average access delay and the time required to read a single sector.

a. Average access time

b. Rotational latency

c. Track-to-track seek time

d. Synchronization delay

Q31. Volatility is a matter of degree and conditions.

a. true

b. false

Q32. The ____, a newer packaging standard, is essentially a SIMM with independent electrical contacts on both sides of the module.

a. double inline memory module

b. dual inline package

c. surface mount package

d. zero-insertion force package

Q33. HTH switching time is the most important component of access time.

a. true

b. false

Q34. A ____ is a CPU cycle spent waiting for access to an instruction or data.

a. wait state

b. hold state

c. purge state

d. clock state

Q35. The memory bus has a much higher data transfer rate than the system bus because of its shorter length, higher clock rate, and (in most computers) large number of parallel communication lines.

a. true

b. false

Q36. Lossy compression of audio and video can achieve compression ratios up to ____.

a. 25:1

b. 50:1

c. 75:1

d. 100:1

Q37. Devices attached to a system bus coordinate their activities with a common ____.

a. bus clock

b. control bus

c. data bus

d. system bus

Q38. In most computers, an I/O port is a ____.

a. system address

b. memory block

c. network device

d. memory address

Q39. The term ____ describes the ratio of data size in bits or bytes before and after compression.

a. compression value

b. compression efficiency

c. compression ratio

d. compression value

Q40. Serial channels in buses are more reliable than parallel channels at very high speeds.

a. true

b. false

Q41. Devices with low data transfer demand can use a single lane, and devices with higher requirements can increase their available data transfer rate by using additional lanes.

a. true

b. false

Q42. The main goal of buffering and caching is to ____.

a. control data channels

b. improve I/O performance

c. improve overall system performance

d. reduce system load

Q43. ____ devices combine optical-scanning technology with a special-purpose processor or software to interpret bitmap content.

a. Optical image recognition

b. Optical character recognition

c. Optical character reproduction

d. Optical image resolution

Q44. Early plasma displays accepted the same analog video signals as CRTs.

a. true

b. false

Q45. A(n) ____ operates with an electrical charge and the attraction of ink to this charge.

a. laser printer

b. inkjet printer

c. impact printer

d. thermal printer

Q46. Bar-code readers are typically used to track large numbers of inventory items, as in grocery store inventory and checkout, package tracking, warehouse inventory control, and zip code routing for postal mail.

a. true

b. false

Q47. A collection of characters of similar style and appearance is called a ____.

a. type

b. scheme

c. pitch

d. font

Q48. Recognition is most accurate when text is printed in a single font and style, with all text oriented in the same direction on the page.

a. true

b. false

Q49. In the United States, resolution is generally stated in ____.

a. lines per inch

b. pixels per line

c. dots per inch

d. dots per millimeter

Q50. On paper, pixel size corresponds to the smallest drop of ink that can be placed accurately on the page.

a. true

b. false

Here’s the SOLUTION

Posted in Homework Help | Comments Off

Gina Fox has started her own company, Foxy Shirts

Part 1 of this quiz is based on the following information.

Gina Fox has started her own company, Foxy Shirts, which manufactures imprinted shirts for special occasions. Since she has just begun this operation, she rents the equipment from a local printing shop when necessary. The cost of the equipment is $350.00. The materials used in one shirt costs $8.00, and Gina can sell these for $15.00 each.

Part 2 is based on the information below.

Farris Billiard Supply sells all types of billiard equipment, and is considering manufacturing their
own brand of pool cues. Mysti  Farris, the production manager, is currently investigating the production of a standard house pool cue that should be very popular. Upon analyzing the costs, Mysti determines that the materials and labor cost for each cue is $25, and the fixed cost that must be covered is $2,400 per week.

QUESTIONS:
Part 1 of 2 – Part 1

This part of the question is based on the following information.
Gina Fox has started her own company, Foxy Shirts, which manufactures imprinted shirts for special occasions. Since she has just begun this operation, she rents the equipment from a local printing shop when necessary. The cost of using the equipment is $350. The materials used in one shirt cost $8, and Gina can sell these for $15 each.

Q-1) If Gina sells 20 shirts, her total revenue will be _________.

A)250    B)300   C)200   D)150

Q-2) If Gina sells 20 shirts, her total variable cost will be _________.

A)140   B)180   C)160   D)120

Q-3) Based on the above information, Gina must sell   shirts to break even. (Hint: Please enter a single number only and round it to an integer if necessary. No decimal points.)

Q-4) Based on the calculation in the previous question, Gina’s total revenue at the breakeven point of output is   . (Hint: Please enter a single number only and round it to an integer if necessary. No decimal points.)

Part 2 of 2 – Part 2
This part of the question is based on the following information.

Farris Billiard Supply sells all types of billiard equipment, and is considering manufacturing their own brand of pool cues. Mysti Farris, the production manager, is currently investigating the production of a standard house pool cue that should be very popular. Upon analyzing the costs, Mysti determines that the materials and labor cost for each cue is $25, and the fixed cost that must be covered is $2,400 per week.

Q-5) If Mysti sells 20 units at a price of $40 each, her total revenue will be _________.
A) 200   B)800   C)100   D)400

Q-6) If Mysti sells 20 cues, her total variable cost will be _________.
A)2000   B)1500   C)500   D) 1000

Q-7) Based on the above information, Mysti  must sell   units to break even. (Hint: Please enter a single number only and round it to an integer if necessary. No decimal points.)

Q-8) Based on the calculation in the previous question, Mysti’s total revenue at the breakeven point of output is   . (Hint: Please enter a single number only and round it to an integer if necessary. No decimal points.)

Here’s the SOLUTION

Posted in Homework Help | Comments Off

The stockholders’ equity section on the December 31

The stockholders’ equity section on the December 31 balance sheet of Chemfast Corporation reported the following amounts:

Contributed Capital       Preferred Stock (par $20; authorized 10,000 shares, ? issued,         of which 1,000 shares are held as treasury stock) $108,000     Additional Paid-in Capital, Preferred 15,390     Common Stock (no-par; authorized 20,000 shares, issued and         outstanding 6,200 shares) 632,400   Retained Earnings 32,000   Treasury Stock, 1,000 Preferred shares at cost 9,600

Assume that no shares of treasury stock have been sold in the past.

Required:

Complete the following statements. (Decreases should be indicated by a minus sign. Round per share to 2 decimal places.)

Here’s the SOLUTION

Posted in Homework Help | Comments Off

QNT 275 MIDTERM EXAM

QNT 275 MIDTERM EXAM

Two paired or matched samples would imply that:

​two data values are collected from the same source (elements) for two dependent samples

​two data values are collected from the same source (elements) for two independent samples

​data are collected on two variables from the elements of two independent samples

​data are collected on one variable from the elements of two independent samples

We can use the analysis of variance procedure to test hypotheses about:

​the proportion of one population

​the mean of one population

​two or more population proportions

​two or more population means

The graph of a cumulative frequency distribution is a(n):

​frequency histogram

​line graph

​stem-and-leaf display

​ogive

​In a hypothesis test, a Type II error occurs when:

​a false null hypothesis is rejected

​a false null hypothesis is not rejected

​a true null hypothesis is not rejected

​a true null hypothesis is rejected

The mean of a discrete random variable is the mean of its:

​percentage distribution

​frequency distribution

​probability distribution

second and third quartiles

​If you divide the number of elements in a sample with a specific characteristic by the total number of elements in the sample, the dividend is the:

​sample distribution

​sample proportion

​sampling distribution

​sample mean

A linear regression:

​gives a relationship between two variables that can be described by a line

​gives a relationship between two variables that cannot be described by a line

​gives a relationship between three variables that can be described by a line

​contains only two variables

A researcher wants to test if the mean annual salary of all lawyers in a city is different than $110,000. The null hypothesis for this example will be that the population mean is:

​greater than to $110,000

not equal to $110,000

​less than to $110,000

​equal to $110,000

A qualitative variable is the only type of variable that:​

​cannot be graphed

​can assume an uncountable set of values

​can assume numerical values

​cannot be measured numerically

You toss a coin nine times and observe 3 heads and 6 tails. This event is a:

​multiple outcome

​multinomial sample point

simple event

​compound event

Which of the following pairs of events are mutually exclusive?

​Female and male

No and yes

​Female and yes

​Female and no

The p-value is the:

​smallest significance level at which the null hypothesis can be rejected

​smallest significance level at which the null hypothesis can be rejected

​largest significance level at which the null hypothesis can be rejected

​largest significance level at which the alternative hypothesis can be rejected

Which of the following assumptions is not required to use ANOVA?

​The populations from which the samples are drawn have the same variance.

​The populations from which the samples are drawn are (approximately) normally distributed.

​The samples drawn from different populations are random and independent.

​All samples are of the same size.

In a hypothesis test, a Type I error occurs when:​

​a true null hypothesis is not rejected

​a false null hypothesis is not rejected

​a false null hypothesis is rejected

​a true null hypothesis is rejected

A quantitative variable is the only type of variable that can:

​be used to prepare tables

​assume numeric values for which arithmetic operations make sense

​have no intermediate values

​be graphed

The mean of a discrete random variable is its:

​box-and-whisker measure

​upper hinge

​expected value

​second quartile

For a one-tailed test, the p-value is:

​twice the area under the curve between the mean and the observed value of the sample statistic

​the area under the curve between the mean and the observed value of the sample statistic

​the area under the curve to the same side of the value of the sample statistic as is specified in the alternative hypothesis

​twice the area under the curve to the same side of the value of the sample statistic as is specified in the alternative hypothesis

​In a one-way ANOVA, we analyze only one:

​mean

​population

​sample

​variable

The alternative hypothesis is a claim about a:

​parameter, where the claim is assumed to be true if the null hypothesis is declared false

​statistic, where the claim is assumed to be true if the null hypothesis is declared false

​statistic, where the claim is assumed to be false until it is declared true

​parameter, where the claim is assumed to be true until it is declared false

To make tests of hypotheses about more than two population means, we use the:

​normal distribution

chi-square distribution

analysis of variance distribution

​t distribution

A continuous random variable x has a right-skewed distribution with a mean of 80 and a standard deviation of 12. The sampling distribution of the sample mean for a sample of 50 elements taken from this population is:

​not normal

​skewed to the left

​skewed to the right

​approximately normal

The model y = A + Bx is a:

​probabilistic model

​stochastic model

​nonlinear model

​deterministic model

For a goodness-of-fit test, the frequencies obtained from the performance of an experiment are the:

​expected frequencies

​observed frequencies

​objective frequencies

​subjective frequencies

An error that occurs because of chance is called: ​

​probability error

​mean error

​nonsampling error

​sampling error

Here’s the SOLUTION

Posted in Homework Help | Comments Off

Marin Inc. has issued three types of debt on January 1, 2017

Marin Inc. has issued three types of debt on January 1, 2017, the start of the company’s fiscal year.

(a) $10 million, 9-year, 14% unsecured bonds, interest payable quarterly. Bonds were priced to yield 10%.

(b) $27 million par of 9-year, zero-coupon bonds at a price to yield 10% per year.

(c) $19 million, 9-year, 9% mortgage bonds, interest payable annually to yield 10%.

Prepar a schedule that identifies the following items for each bond:

(1) maturity value, (2) number of interest periods over life of bond, (3) stated rate per each interest period, (4) effective-interest rate per each interest period, (5) payment amount per period, and (6) present value of bonds at date of issue. (Round stated and effective rate per period to 2 decimal places, e.g. 10.25%. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)

Here’s the SOLUTION

Posted in Homework Help | Comments Off

On January 1, 2017, Carla Company issued $372,000 of 9%, 10-year

On January 1, 2017, Carla Company issued $372,000 of 9%, 10-year bonds at par. Interest is payable quarterly on April 1, July 1, October 1, and January 1.2.On June 1, 2017, Sarasota Company issued $324,000 of 10%, 10-year bonds dated January 1 at par plus accrued interest. Interest is payable semiannually on July 1 and January 1.

For each of these two independent situations, prepare journal entries to record the following. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(a) The issuance of the bonds.

(b) The payment of interest on July 1.

(c) The accrual of interest on December 31.

Here’s the SOLUTION

Posted in Homework Help | Comments Off

First National Bank has reserves of $80, loans of $520, and checkable

Question 1

First National Bank has reserves of $80, loans of $520, and checkable deposits of $600.  If the bank faces a required reserve ratio of 5%, what are the bank’s excess reserves?
$20
$34
$70
$50

Question 2

Suppose that initially, Center Bank has checkable deposits of $400, loans at $290 and reserves at 110.  Then Center Bank receives a new deposit of $200.  The required reserve ratio is 6%.  After the new deposit but prior to asset transformation, the bank has excess reserves of ____, and then after asset transformation the bank’s total value of loans is now ____ .
$202; $450
$220; $466
$274; $564
$520; $630

Question 3

Suppose that Bank One has deposits of $1200, bank capital of $100, reserves at $120 and loans at $1180.  What is the maximum write down in the value of the bank’s loans that will keep bank capital from falling below $25?
$0
$25
$50
$75

Question 4

An entrepreneur needs a $500 loan to invest in a risky project.  The entrepreneur will repay the loan with probability 0.92, and default otherwise.  If the bank offers a competitive interest rate on this loan, what is the required loan repayment?

$528
$533.9
$543.5
$566.6

Question 5

A borrower requests a $150 loan from the bank.  The borrower is type A with probability 0.35 and type B otherwise.  Type A always repays but type B only repays with probability 0.7.  If the bank cannot observe the borrower’s type, what is the competitive interest rate the bank can offer?

24.3%
27.5%
31%
33.3%

Here’s the SOLUTION

Posted in Homework Help | Comments Off

ACME Manufacturing is considering replacing an existing production line

ACME Manufacturing is considering replacing an existing production line with a new line that has a greater output capacity and operates with less labor than the existing line. The new line would cost $1 million, have a five-year life, and be depreciated using MACRS over three years. At the end of five years, the new line could be sold as scrap for $410,000 (in year 5 dollars). Because the new line is more automated, it would require fewer operators, resulting in a savings of $79,000 per year before tax and unadjusted for inflation (in today’s dollars). Additional sales with the new machine are expected to result in additional net cash inflows, before tax, of $96,000 per year (in today’s dollars).

If ACME invests in the new line, a one-time investment of $10,000 in additional working capital will be required. The tax rate is 35 percent, the opportunity cost of capital is 10 percent, and the annual rate of inflation is 4.90 percent.

What is the NPV of the new production line?

Here’s the SOLUTION

Posted in Homework Help | Comments Off

Keener Incorporated had the following transactions occur involving current

Keener Incorporated had the following transactions occur involving current assets and current liabilities during February 2017.

Feb. 3 Accounts receivable of $15,500 are collected.7Equipment is purchased for $27,700 cash.11Paid $3,100 for a 1-year insurance policy.14Accounts payable of $11,000 are paid.18Cash dividends of $5,300 are declared.

Additional information:

1. As of February 1, 2017, current assets were $130,600, and current liabilities were $49,600.2.

As of February 1, 2017, current assets included $14,600 of inventory and $2,500 of prepaid expenses.

(a) Compute the current ratio as of the beginning of the month and after each transaction.

(b) Compute the acid-test ratio as of the beginning of the month and after each transaction.

Posted in Homework Help | Comments Off