Explain, the following questions as given in the attachment.

Part 4 The Capital Budgeting Process well value 4. You will receive $6.800 three years from now. The discount rate is 10 perce What is the value of your investment two years from now? Muluply $6,800 x (1/1.10) or divide by 1.10 (one year's discount rate at 10 percent h. What is the value of your investment one year from now? Multiply your answer to part a by (1/1.10). What is the value of your investment today? Multiply your answer to pan , by (1/1. 10). Use the formula PV = FV * 7 , to find the present value of $6,600 received three years from now at 10 percent interest. 5. If you invest $9.000 today, how much will you have a. In 2 years at 9 percent? b. In 7 years at 12 percent? In 25 years at 14 percent? d. In 25 years at 14 percent (compounded semiannually)? 6. Your aunt offers you a choice of $20,100 in 20 years or $870 today. If money is discounted at 17 percent, which should you choose? 7. Your uncle offers you a choice of $105,000 in 10 years or $47.000 today. If money is discounted at 9 percent. which should you choose? Do 8. Your father offers you a choice of $105,000 in 12 years or $47,000 today. a. If money is discounted at 8 percent, which should you choose? b. If money is still discounted at 8 percent, but your choice is between $105,000 in 9 years or $47,000 today, which should you choose? 9. You are going to receive $205,000 in 18 years. What is the difference in presem value between using a discount rate of 12 percent versus 9 percent? 10. How much would you have to invest today to receive a. $15,000 in 8 years at 10 percent? b. $20,000 in 12 years at 13 percent? c. $6,000 each year for 10 years at 9 percent? d. $50,000 each year for 50 years at 7 percent? 11. If you invest $8,500 per period for the following number of periods, how much would you have? a. 12 years at 10 percent. b. 50 years at 9 percent. 12. You invest a single amount of $10,000 for 5 years at 10 percent. At the end of 5 years you take the proceeds and invest them for 12 years at 15 percent. How much will you have after 17 years? 13. Mrs. Crawford will receive $7,600 a year for the next 19 years from her trust. If a 14 percent interest rate is applied, what is the current value of the future payments? 14. Phil Goode will receive $175,000 in 50 years. His friends are very jealous of him. If the funds are discounted back at a rate of 14 percent, what is the present value of his future "pot of gold"? 15. Sherwin Williams will receive $18.500 a year for the next 25 years as a result of a picture he has painted. If a discount rate of 12 percent is applied, should he be willing to sell out his future rights now for $165,000? 16. Carrie Tune will receive $19,500 for the next 20 years as a payment for a new song she has written. If a 10 percent rate is applied, should she be willing to sell out her future rights now for $160,000?MAT 124 Data Analysis if! - Spring 21:21 In this assignment, you will practice conducting a hypothesis test using real data. You will test if there is evidence that the temperature in a month and year of your choosing was different than the averages. Below are the average monthly low and high temperatures (in degrees Fahrenheit) ln New Jersey that you will use for the null hypothesis. [Em- AveraeLow AveraeHIh 49" En! Tl' Tr'El' 34 we. 82* 5e -tem her October 64\" I'- _ m _ December To Do: 1. Pick a month and year to compare to the average. Decide if you will compare low or high temperatures. 2. Research and record the daily low or high temperature for your chosen month. State the website where you found your data. 3. Find the mean iround to 1 decimal place} and standard deviation {round to .2 decimal placesi. Pick a significance level [or] for your hypothesis tests. Conduct a two-sided hypothesis test. Conduct the appropriate one-sld ed hypothesis test. Write up each hypothesis test, including an appropriate conclusion and interpretation. You will notice that the t-value for each hypothesis test is the same. but the p value is different. Explain how the t- and p-values are related to each other and why the p-vaiue changes. (Note this Is not included In the example.) I Hints: o It may be helpful to explain using a graph ofthe normal distribution. Since n :- 23. the t~dlstrlbution will be close enough to the normal distribution that you can use the normal distribution for your explanation. o There are graphs in the Chapter El module lectures in Canvas. PHF'E"? Finance I Study Guide Chapter 1-4 Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Which of the following statements is CORRECT? a. One advantage of forming a corporation is that equity investors are usually exposed to less liability than they would be in a partnership. b. Corporations face fewer regulations than sole proprietorships. C. One disadvantage of operating a business as a sole proprietor is that the firm is subject to double taxation, because taxes are levied at both the firm level and the owner level. d. It is generally less expensive to form a corporation than a proprietorship because, with a proprietorship, extensive legal documents are required. C. If a partnership goes bankrupt, each partner is exposed to liabilities only up to the amount of his or her investment in the business. 2. Relaxant Inc. operates as a partnership. Now the partners have decided to convert the business into a corporation. Which of the following statements is CORRECT? a. Relaxant's shareholders (the ex-partners) will now be exposed to less liability. b. The company will probably be subject to fewer regulations and required disclosures. C. Assuming the firm is profitable, none of its income will be subject to federal income taxes. d. The firm's investors will be exposed to less liability, but they will find it more difficult to transfer their ownership. C. The firm will find it more difficult to raise additional capital to support its growth. 3. Which of the following statements is CORRECT? a. Corporations generally face fewer regulations than sole proprietorships. b. Corporate shareholders are exposed to unlimited liability. C. It is usually easier to transfer ownership in a corporation than in a partnership. d. Corporate shareholders are exposed to unlimited liability, but this factor is offset by the tax advantages of incorporation. C. There is a tax disadvantage to incorporation, and there is no way any corporation can escape this disadvantage. even if it is very small. 4. Charleston Corporation (CC) now operates as a "regular" corporation, but it is considering a switch to S Corporation status. CC is owned by five stockholders who each hold 20% of the stock, and each faces a personal tax rate of 38%. The firm earns $1,200,000 per year before taxes, and since it has no need for retained earnings, it pays out all of its earnings as dividends. Assume that the corporate tax rate is 35% and the personal tax rate is 38%. How much more (or less) spendable income would each stockholder have if the firm elected S Corporation status? a. $40,102 b. $52,080 C. $53.122 d $57.809 $45.310Question 1 (42 p) Consider a closed economy where goods market and finalcial markets can be described by the following equations for penod c Co - 100 + 0.5Y - 200 + 0.25Y. -200r G = 100; T = 200 Suppose inflation excpectations in this economy is based on past period's inflation rate, i.c. Let Ya- F(N.) - Na; the labor force is given as constant at LF = 1000. a. (4p) Write down the IS equation for this economy. b. (4p) Assume a horizontal LM function where the Central Bank announces the interest rate to be b = 1= 0.30 (in period t, the Central Bank sets the nominal interest rate a 30%%, with " = 0.1 (10% expected inflation rate for period (). What will be the short run equilibrium level of output. Y's for this economy? c. (4p) Suppose the natural unemployment rate for this economy is u. = $%. What would be the potential output level, Yo? How does Y's compare to the short-term equilibrium level of output, Y, that you have found? d. (3p) Based on your answer to part c). what can you suggest on the relationship between n and In? Explain e) (4p) Suppose that the Phillips Curve (PC) relationship for this economy is given by: Express the PC relationship above as a function of output gap, Yo - Y's. f) (4p) What is the current inflation rate, # for this economy? g) (8p) Draw the IS-LM-PC graph. Show the current short-run equilibrium of this economy on your graph. h ) (8p) How will the dynamics of this economy behave towards the medium run? Explain i) What would happen if the CB does not intervene, and (i) if the CB intervenes. Show your answer on the graph that you have drawn in g). Make sure you also show the direction of movement(s) on your graph. j) (3p) Will the medium-run inflation rate in this economy be higher than lower than equal to current inflation rate n- under cases (i) and (ii) that you have described in part h)? Explain