The mean number of rushing yards for one NFL team was less than 99 yards per game. If a hypothesis test is performed, how should you interpret a decision that rejects the null hypothesis?

Answers

Answer 1

Question options :

A. There is sufficient evidence to reject the claim

u < 99.

B. There is sufficient evidence to support the claim

u < 99.

C. There is not sufficient evidence to reject the claim

u < 99.

D. There is not sufficient evidence to support the claim

u< 99.

Answer:

B. There is sufficient evidence to support the claim

u < 99.

Step-by-step explanation:

We construct the n*ll and alternative hypotheses to support our claim

The n*ll hypothesis :H0

The alternative hypothesis : Ha

N*ll hypothesis =H0: u=99

Alternative hypothesis =Ha: u<99

So if n*ll hypothesis (H0) u=99 is rejected, then we accept the alternative hypothesis that u<99

we can therefore have sufficient evidence to support our claim that u<99


Related Questions

Find an exact value of sin(17pi/12)

Answers

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[tex]\frac{(17)(3.141593)}{12}[/tex]

= [tex]\frac{53.407075}{12}[/tex]

= [tex]4.45059[/tex]

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If this helped you, could you maybe give brainliest..?

Also Have a great day/night!

❀*May*❀

I have an answer and explanation but I can't type so search up the question you asked and you should get an answer and explanation from s0cratic.

3
BO
Evaluate the function f(x) = x2 + 4x + 1 at the given values of the independent variable and simplify.
a. f(6)
b. f(x +9)
c. f(-x)

Answers

Answer:

a) f(6)=(6)^2+4(6)+1=65

b)f (x+9)=(x+9)^2+4 (x+9)+1=(x^2+18x+81)+(4x+36)+1=x^2+22x+117

f (-x)=(-x)^2-4x+1

A new fast-food firm predicts that the number of franchises for its products will grow at the rate dn dt = 6 t + 1 where t is the number of years, 0 ≤ t ≤ 15.

Answers

Answer:

The answer is "253"

Step-by-step explanation:

In the given- equation there is mistype error so, the correct equation and its solution can be defined as follows:

Given:

[tex]\bold{\frac{dn}{dt} = 6\sqrt{t+1}}\\[/tex]

[tex]\to dn= 6\sqrt{t+1} \ \ dt.....(a)\\\\[/tex]

integrate the above value:

[tex]\to \int dn= \int 6\sqrt{t+1} \ \ dt \\\\\to n= \frac{(6\sqrt{t+1} )^{\frac{3}{2}}}{\frac{3}{2}}+c\\\\\to n= \frac{(12\sqrt{t+1} )^{\frac{3}{2}}}{3}+c\\\\[/tex]

When the value of n=1 then t=0

[tex]\to 1= \frac{12(0+1)^{\frac{3}{2}}}{3}+c\\\\ \to 1= \frac{12(1)^{\frac{3}{2}}}{3}+c\\\\\to 1-\frac{12}{3}=c\\\\\to \frac{3-12}{3}=c\\\\\to \frac{-9}{3}=c\\\\\to c=-3\\[/tex]

so the value of  n is:

[tex]\to n= \frac{(12\sqrt{t+1} )^{\frac{3}{2}}}{3}-3\\\\[/tex]

when we put the value t= 15 then,

[tex]\to n= \frac{(12\sqrt{15+1} )^{\frac{3}{2}}}{3}-3\\\\\to n= \frac{(12\sqrt{16} )^{\frac{3}{2}}}{3}-3\\\\\to n= \frac{(12\times 64)}{3}-3\\\\\to n= (4\times 64)-3\\\\\to n= 256-3\\\\\to n= 253[/tex]

36x7 please EXPLAIN the process of the multiplication plse

Answers

36×7

=252

Explaination :

First Multiply 6 and 7 we get 42 !

Write 2 and 4 will be added to the product of 3×7

We get 21 and add 4 here

So we get 252

Answer:

[tex]36 \times 7 = 252[/tex]

Step-by-step explanation:

Firstly multiply 6 with 7 you have to write 2 and take 4 carry and then multiply 7 with 3 u get 21 now add the number u carry in 21 u get ur answer. 252.

Hope it helps u mate

Determine if the process appears to be within statistical control. If not, state the reason why not.
a. It does not appear to be within statistical control because there is an upward shift.
b. It appears to be within statistical control.
c. It does not appear to be within statistical control because there is an upward trend.
d. It does not appear to be within statistical control because there is increasing variation.

Answers

Answer:

c. It does not appear to be within statistical control because there is an upward trend.

Step-by-step explanation:

Statistical process control is a method for quality control which employs statistical method to monitor and control process. It ensures operation efficiency and ensuring required specification to reduce wastes in production lines. Here the process variation is out of control because the statistical control has an upward trend.

algebra pyramid please answer !! be the first to be marked as a brainliest .

Answers

Answer:

The first pyramid:

      63x

  39x  24x  

23x  16x  8x

The second pyramid:

     162x

 82x  80x  

4x  78x  2x

The third pyramid:

     12a+2b

9a+b   3a+b  

9a     b     3a

The fourth pyramid:

      -19a

  -5a   -14a  

3a   -8a  -6a

   

Step-by-step explanation:

All that an alegbra pyramid is is adding the two terms below it.

So you can see how I added the terms that lied below each number, such as in number 1:  I added 23x and 16x to get me 39x, and I added 16x and 8x to get me 24.

Hope this helped!

as
8
3) The volume of
a wall, 5 times
high as it is board and 8
times as long as it is high, 12.8
(a.metors) Find The Breadth of the
Wall​

Answers

Answer:

  0.4 meters

Step-by-step explanation:

The volume is ...

  V = LHB

  12.8 m³ = (8(5B))(5B)(B) = 200B³ . . . fill in given values

  0.064 m³ = B³ . . . . . simplify

  ∛0.064 m = B = 0.4 m

The breadth of the wall is 0.4 meters.

A type of related samples design in which participants are observed more than once is called a
A. repeated measures design
B. matched pairs design
C. matched samples design
D. both matched pairs design and matched samples design

Answers

Answer:

Option A (repeated measures design) is the correct option.

Step-by-step explanation:

Researchers as well as statisticians vary in terms of methods used mostly for repetitive measurements. Besides illustration, repeated models of measurements are however recognized as repeated analyzes of variance measurements, standardized considerations of measurements, or layouts of objects throughout them.

The other three options are not related to the given instance. So that alternative A would be the correct choice.

Which of the following correlation values represents a perfect linear relationship between two quantitative
variables? Select all that apply.
A. 0
B. 9
c. -1
D. 1
E. .5

Answers

Answer:

  C.  -1

  D.  1

Step-by-step explanation:

A perfect linear relationship is indicated by a correlation with a magnitude of 1. The sign of the correlation coefficient is the sign of the slope of the line describing the relationship. It may be positive or negative.

The appropriate choices are ...

  C.  -1

  D.  1

Answer:

c=-1

d=1

Step-by-step explanation:

A group of fitness club members lose a combined total of 28 kilograms in 1 week. There are approximately 2.2 pounds in 1 kilogram. Assuming the weight loss happened at a constant rate, about how many pounds did the group lose each day?

Answers

Answer:

8.8 pounds

Step-by-step explanation:

Given the following :

Combined weight loss which occurred within a week = 28 kg

Number of days in a week = 7 days

1 kilogram (kg) = 2.2 pounds

Combined weight loss in pounds that occurs within a week:

Weight loss in kg × 2.2

28kg * 2.2 = 61.6 pounds

Assume weight loss occurred at a constant rate :

Weight lost by the group per day :

(Total weight loss / number of days in a week)

(61.6 pounds / 7)

= 8.8 pounds daily

Answer:

88

Step-by-step explanation:

Found the answer and I am doing the quiz rn lel

Which expression is equal to (1+6i)−(7+3i) ?

Answers

Answer:

- 6+3i

Step-by-step explanation:

[tex](1+6i)-(7+3i) ?\\Group\:the\:real\:part\:and\:the\:imaginary\\\:part\:of\:the\:complex\:number\\\left(a+bi\right)\pm \left(c+di\right)=\left(a\:\pm \:c\right)+\left(b\:\pm \:d\right)i\\=\left(1-7\right)+\left(6-3\right)i\\1-7=-6\\6-3=3\\=-6+3i[/tex]

Find the measure of A.
A. 50
B. 70
C. 100
D. 90

Answers

Answer:

D

Step-by-step explanation:

I don't know how to eliminate the wrong answers.

Two line segments which have one end at a diameter and the other end meeting at a common point, make a 90 degree angle.

A is made that way, so A is 90 degrees.

Answer:

Step-by-step explanation:

I believe it is 90

Find the indicated complement. A certain group of women has a 0.12​% rate of​ red/green color blindness. If a woman is randomly​ selected, what is the probability that she does not have​ red/green color​ blindness?

Answers

Answer:

the probability will be 0.

Step-by-step explanation:

0.12%= 0.0012= 3/2500.

coefficient of 8x+7y

Answers

Answer: I’m pretty sure it is 8 and 7 because those are the numbers multiplied with variables.

Answer:

8

Step-by-step explanation:

Identify the exponents on the variables in each term, and add them together to find the degree of each term.

8x→1

7y→1

The largest exponent is the degree of the polynomial.

1

The leading term in a polynomial is the term with the highest degree.

8x

The leading coefficient of a polynomial is the coefficient of the leading term.

____________________________________________________________

The leading term in a polynomial is the term with the highest degree.

8x

The leading coefficient in a polynomial is the coefficient of the leading term.

8

List the results.

Polynomial Degree: 1

Leading Term: 8x

Leading Coefficient: 8

Hope This Helps!!!

Suppose that 11% of all steel shafts produced by a certain process are nonconforming but can be reworked (rather than having to be scrapped). Consider a random sample of 200 shafts, and let X denote the number among these that are nonconforming and can be reworked.Required:a. What is the (approximate) probability that X is at most 30?b. What is the (approximate) probability that X is less than 30?c. What is the (approximate) probability that X is between 15 and 25 (inclusive)?

Answers

Answer:

(a) The probability that X is at most 30 is 0.9726.

(b) The probability that X is less than 30 is 0.9554.

(c) The probability that X is between 15 and 25 (inclusive) is 0.7406.

Step-by-step explanation:

We are given that 11% of all steel shafts produced by a certain process are nonconforming but can be reworked. A random sample of 200 shafts is taken.

Let X = the number among these that are nonconforming and can be reworked

The above situation can be represented through binomial distribution such that X ~ Binom(n = 200, p = 0.11).

Here the probability of success is 11% that this much % of all steel shafts produced by a certain process are nonconforming but can be reworked.

Now, here to calculate the probability we will use normal approximation because the sample size if very large(i.e. greater than 30).

So, the new mean of X, [tex]\mu[/tex] = [tex]n \times p[/tex] = [tex]200 \times 0.11[/tex] = 22

and the new standard deviation of X, [tex]\sigma[/tex] = [tex]\sqrt{n \times p \times (1-p)}[/tex]

                                                                  = [tex]\sqrt{200 \times 0.11 \times (1-0.11)}[/tex]

                                                                  = 4.42

So, X ~ Normal([tex]\mu =22, \sigma^{2} = 4.42^{2}[/tex])

(a) The probability that X is at most 30 is given by = P(X < 30.5)  {using continuity correction}

        P(X < 30.5) = P( [tex]\frac{X-\mu}{\sigma}[/tex] < [tex]\frac{30.5-22}{4.42}[/tex] ) = P(Z < 1.92) = 0.9726

The above probability is calculated by looking at the value of x = 1.92 in the z table which has an area of 0.9726.

(b) The probability that X is less than 30 is given by = P(X [tex]\leq[/tex] 29.5)    {using continuity correction}

        P(X [tex]\leq[/tex] 29.5) = P( [tex]\frac{X-\mu}{\sigma}[/tex] [tex]\leq[/tex] [tex]\frac{29.5-22}{4.42}[/tex] ) = P(Z [tex]\leq[/tex] 1.70) = 0.9554

The above probability is calculated by looking at the value of x = 1.70 in the z table which has an area of 0.9554.

(c) The probability that X is between 15 and 25 (inclusive) is given by = P(15 [tex]\leq[/tex] X [tex]\leq[/tex] 25) = P(X < 25.5) - P(X [tex]\leq[/tex] 14.5)   {using continuity correction}

       P(X < 25.5) = P( [tex]\frac{X-\mu}{\sigma}[/tex] < [tex]\frac{25.5-22}{4.42}[/tex] ) = P(Z < 0.79) = 0.7852

       P(X [tex]\leq[/tex] 14.5) = P( [tex]\frac{X-\mu}{\sigma}[/tex] [tex]\leq[/tex] [tex]\frac{14.5-22}{4.42}[/tex] ) = P(Z [tex]\leq[/tex] -1.70) = 1 - P(Z < 1.70)

                                                          = 1 - 0.9554 = 0.0446

The above probability is calculated by looking at the value of x = 0.79 and x = 1.70 in the z table which has an area of 0.7852 and 0.9554.

Therefore, P(15 [tex]\leq[/tex] X [tex]\leq[/tex] 25) = 0.7852 - 0.0446 = 0.7406.

Yelena needs to swim a total of 8 miles this
week. So far, she swam 5 miles. Use the
equation 5 + m=8 to find how many more
miles Yelena needs to swim.

Answers

Answer:

3 miles

Step-by-step explanation:

5 + m=8

Subtract 5 from each side

5-5 + m=8-5

m = 3

She needs to swim 3 more miles

Answer:

Yelena needs to swim 3 more miles

Step-by-step explanation:

You need to solve for the variable "m", which represents the miles. Based on the information, Yelena swam 5 miles and she needs to swim 8. Solve:

[tex]5+m=8[/tex]

To find the value of m, you need to isolate it on one side of the equation. To do this, you need to get the 8 and 5 on the same side of the equal operation. For this, you need to use reverse operations. This undoes the value from one side and does the same on the other, keeping the equation balanced. Since we have a "positive 5", we take the opposite, which would be a "negative 5". So subtract 5 from both sides of the equation:

[tex]5-5+m=8-5[/tex]

Simplify. The 5's cancel each other out, leaving 0. 8-5 is 3:

[tex]m=3[/tex]

The total miles left that Yelena needs to swim is 3 miles.

:Done

Solve x2 + 9x + 8 = 0 by completing the square. What are the solutions?
O (1.-8)
O (1.8)
O (-1-8)​

Answers

Answer: (-1,-8)

Explanation:

x^2 + 9x + 8 = 0
x^2 + 9x = -8

Add (9/2)^2 to both sides

x^2 + 9x + (9/2)^2 = -8 + (9/2)^2
(x + 9/2)^2 = -8 + 81/4
(x + 9/2)^2 = -32/4 + 81/4
(x + 9/2)^2 = 49/4

Square root both sides

Sqrt (x + 9/2)^2 = sqrt 49/4
x + 9/2 = plus or minus 7/2

Set x + 9/2 = 7/2:

x + 9/2 = 7/2
x = 7/2 - 9/2
x = -2/2 = -1

Set x + 9/2 = -7/2:
x + 9/2 = -7/2
x = -7/2 - 9/2
x = -16/2 = -8

Compute the least-squares regression line for the given data set. Use a TI-84 calculator. Round final answers to four decimal places, as needed.
x 5 7 6 2 1
y 4 3 2 5 1
Regression line equation: ŷ = _______ + _______ x.

Answers

Answer:

   Y = 2.843+ 0.037 X

Step-by-step explanation:

Let the equation of the straight line to be fitted to the data , be Y = a+b X where a and b are to be evaluated. The normal equations fro determining a and b are

∑Y = na +b ∑X

∑XY = a∑X + b∑X²

We now calculate ∑X, ∑Y , ∑X², and ∑XY

X                Y                XY              X²

5                  4                 20            25

7                  3              21                49

6                  2                 12            36

2                  5                 10             4

1                    1                1                 1          

21                 15                 64           115  

Thus the normal equation becomes

                                                 5a + 21b =15

                                                21a +115b = 64

Solving these two equations simultaneously we get

                                                105 a + 441b = 315

                                                105a + 575b = 320

                                                            134b= 5

b= 0.037 , a= 2.843

Hence the equation for the required straight line is

                    Y = 2.843+ 0.037 X

13,226 divided by 29

Answers

13226/29= 456.068965517

Given the function, Calculate the following values:

Answers

Answer:

[tex]f(-2)=33\\f(-1)=12\\f(0)=1\\f(1)=0\\f(2)=9[/tex]

Step-by-step explanation:

[tex]f(x)=5x^{2} -6x+1\\f(-2)=5(-2)^{2} -6(-2)+1\\f(-2)=5(4)+12+1\\f(-2)=20+13\\f(-2)=33[/tex]

[tex]f(x)=5x^{2}-6x+1\\f(-1)=5(-1)^{2} -6(-1)+1\\f(-1)=5(1)+6+1\\f(-1)=5+7\\f(-1)=12[/tex]

[tex]f(x)=5x^{2}-6x+1\\f(0)=5(0)^{2}-6(0)+1\\f(0)=5(0)-0+1\\f(0)=0+1\\f(0)=1[/tex]

[tex]f(x)=5x^{2}-6x+1\\f(1)=5(1)^{2}-6(1)+1\\f(1)=5(1)-6+1\\f(1)=5-5\\f(1)=0[/tex]

[tex]f(x)=5x^{2}-6x+1\\f(2)=5(2)^{2}-6(2)+1\\f(2)=5(4)-12+1\\f(2)=20-11\\f(2)=9[/tex]

Use the probability distribution table to answer the question.
What is P(1 < X < 5)?
Enter your answer, as a decimal, in the box.

Answers

Answer: 0.51

Add up the P(x) values that correspond to x = 2 through x = 4

0.07+0.22+0.22

So we have a 51% chance of getting an x value such that 1 < x < 5

By using the probability distribution table, the value of P(1<x<5) is 0.51

What is Probability?

Probability is the branch of mathematics concerning numerical descriptions of how likely an event is to occur, or how likely it is that a proposition is true

What is Probability distribution?

A probability distribution is the mathematical function that gives the probabilities of occurrence of different possible outcomes for an experiment. It is a mathematical description of a random phenomenon in terms of its sample space and the probabilities of events

Given,

We have to find the value of P(1<x<5)

P(1<x<5) = P(2)+P(3)+P(4)

P(2)=0.07

P(3)=0.22

P(4)=0.22

P(1<x<5) = 0.07+0.22+0.22 =0.51

Hence, the value of P(1<x<4)= 0.51

Learn more about Probability and Probability distribution here

https://brainly.com/question/14210034

#SPJ2

Given the following hypotheses: H0: μ = 490 H1: μ ≠ 490 A random sample of 15 observations is selected from a normal population. The sample mean was 495 and the sample standard deviation 9. Using the 0.01 significance level:
a.) State the decision rule.
b.) Compute the value of the test statistic.
c.) What is your decision regarding the null hypothesis?

Answers

Answer:

We conclude that the population mean is equal to 490.

Step-by-step explanation:

We are given that a random sample of 15 observations is selected from a normal population. The sample mean was 495 and the sample standard deviation 9.

Let [tex]\mu[/tex] = population mean.

So, Null Hypothesis, [tex]H_0[/tex] : [tex]\mu[/tex] = 490      {means that the population mean is equal to 490}

Alternate Hypothesis, [tex]H_A[/tex] : [tex]\mu\neq[/tex] 490     {means that the population mean is different from 490}

The test statistics that will be used here is One-sample t-test statistics because we don't know about population standard deviation;

                               T.S.  =  [tex]\frac{\bar X-\mu}{\frac{s}{\sqrt{n} } }[/tex]  ~ [tex]t_1_4[/tex]

where, [tex]\bar X[/tex] = sample mean = 495

            s = sample standard deviation = 9

             n = sample of observations = 15

So, the test statistics =   [tex]\frac{495-490}{\frac{9}{\sqrt{15} } }[/tex]  ~ [tex]t_1_4[/tex]

                                     =  2.152

The value of t-test statistics is 2.152.

Now, at a 0.01 level of significance, the t table gives a critical value of -2.977 and 2.977 at 14 degrees of freedom for the two-tailed test.

Since the value of our test statistics lies within the range of critical values of t, so we have insufficient evidence to reject our null hypothesis as the test statistics will not fall in the rejection region.

Therefore, we conclude that the population mean is equal to 490.

in the diagram, find the values of a and b.​

Answers

Answer:

           m∠a = 67° ,   m∠b = 42°

Step-by-step explanation:

∠a is alternate interior angle to ∠ECD

∠b is alternate interior angle to ∠BCD

so:

If AB || CD then:

m∠a = m∠ECD = 25° + 42° = 67°

m∠b = 42°

Carla drove her truck 414 miles on 18 gallons of gasoline. How many miles did she drive per gallon?

Answers

Answer:

23 miles per gallon

Step-by-step explanation:

414 miles = 18 gallons

=> 18/18 gallons = 414/18 miles

=> 1 gallon = 23 miles

So, she drove 23 miles per gallon.

What is the measure of FEG?

A. 30 degrees

B. 40 degrees

C. 50 degrees

D. 70 degrees

Please include ALL work!! <3

Answers

Answer:

C. 50 degrees

Step-by-step explanation:

Because 6x + 5x = 110° and x = 10

5×10 = FEG 50°

A parent increases a child’s monthly allowance by 20% each year. If the allowance is $8 per month now, in about how many years will it take to reach $20 per month? Use the equation 20 = 8(1.2)x to solve the problem. Round to the nearest year. 1 year 5 years 2 years 16 years

Answers

Answer:

6 years

Step-by-step explanation:

A parent increases a child’s monthly allowance by 20% each year. If the allowance is $8 per month now. This is an exponential function, An exponential function is given by:

[tex]y=ab^x[/tex]

Let x be the number of years and y be the allowance. The initial allowance is $8, this means at x = 0, y = 8

[tex]y=ab^x\\8=ab^0\\a=8[/tex]

Since it increases by 20% each year, i.e 100% + 20% = 1 + 0.2 = 1.2. This means that b = 1.2

Therefore:

[tex]y=ab^x\\y=8(1.2^x) \\[/tex]

To find the number of years will it take to reach $20 per month, we substitute y = 20 and find x

[tex]20=8(1.2)^x\\20/8=1.2^x\\1.2^x=2.5\\Taking \ natural\ log\ of \ both\ sides:\\ln(1.2^x)=ln2.5\\xln(1.2)=0.9163\\x=0.9163/ln(1.2)\\x=5.026[/tex]

x = 6 years to the nearest year

Answer:

5 years

Step-by-step explanation:444

5/7 minus 2/9 please

Answers

Answer:

[tex]\large \boxed{31/63}[/tex]

Step-by-step explanation:

5/7 - 2/9

Make denominators equal by LCM.

(5 × 9)/(7 × 9) - (2 × 7)/(9 × 7)

45/63 - 14/63

Subtract fractions since denominators are equal.

(45 - 14)/63

31/63

Answer:

[tex]\frac{31}{63}[/tex]

Step-by-step explanation:

Find the LCM of 7 and 9: 63Find how much we increased each number to get to 63: we increased 7 by 9, and we increased 9 by 7Multiply the numerators by the corresponding increase numbers: 5 × 9 = 45, and 2 × 7 = 14Put the new numerators over the new denominators, so it looks like this: [tex]\frac{45}{63}[/tex] and [tex]\frac{14}{63}[/tex] Finally, subtract one from the other and here's what you get: [tex]\frac{31}{63}[/tex]

Therefore, the answer is [tex]\frac{31}{63}[/tex].

A passenger train traveled 180 miles in the same amount of time it took a freight train to travel 120 miles. The rate of the freight train was 15 miles per hour slower than the rate of the passenger train. Find the rate of the passenger train.

Answers

Answer:

The passenger train is moving at 45 miles per hour

Step-by-step explanation:

Let the amount of time it took the two trains to travel the distance = t.

Since the two trains traveled the distance at the same time,

Rate of the passenger train =[tex]\frac{180}{t}[/tex]

Rate of the freight train = [tex]\frac{120}{t}[/tex]

Where t is in hours.

From the problem, we can see that the rate of the freight train was 15 miles per hour slower than the rate of the passenger train. Mathematically, we can represent this as

[tex]\frac{120}{t}= \frac{180}{t}-15[/tex]

from the above equation, we can now get our value for t  as

[tex]\frac{120-180}{t}=-15\\\frac{-60}{t}=-15\\t=4 hours[/tex]

We have our time of travel for the two trains as 4 hours.

The rate of the passenger train can now be calculated by 180/4 = 45 miles per hour

A human factor expert recommends that there be atleast 9 square ft of floor space in a classroom for every student in the class. Find the min space required for 49 students

Answers

I think the answer is 441 ft I’m sorry if it’s wrong

Century Roofing is thinking of opening a new warehouse, and the key data are shown below. The company owns the building that would be used, and it could sell it for $100,000 after taxes if it decides not to open the new warehouse. The equipment for the project would be depreciated by the straight-line method over the project's 3-year life, after which it would be worth nothing and thus it would have a zero salvage value. No new working capital would be required, and revenues and other operating costs would be constant over the project's 3-year life. What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.)

Answers

Question Completion:

WACC = 10.0%

Opportunity cost = $100,000

Net equipment cost (depreciable basis) = $65,000

Straight-line deprec. rate for equipment = 33.333%  

Sales revenues, each year = $123,000

Operating costs (excl. deprec.), each year = $25,000

Tax rate = 35%

Answer:

Century Roofing

Project's NPV is: ($6,578)

Step-by-step explanation:

a) Data and Calculations:

WACC = 10.0%

Opportunity cost = $100,000

Net equipment cost (depreciable basis) = $65,000

Straight-line deprec. rate for equipment = 33.333%  

Sales revenues, each year = $123,000

Operating costs (excl. deprec.), each year = $25,000

Tax rate = 35%

Cash outflow in year 0 = $165,000 (Opportunity and new equipment costs)

Annual Cash inflow = $123,000 - $25,000 - $34,300 = $63,700

PV of annuity for 3 years at 10% = $158,422 ($63,700 x 2.487)

NPV = Cash inflow minus Cash outflow

= $158,422 - $165,000

= ($6,578)

Negative NPV

b) Since Century Roofing could have realized $100,000 from the sale of the building if it decides not to open the new warehouse, this opportunity cost is factored into the calculation of the Net Present Value.  It becomes a present cash outflow.  Century Roofing's opportunity cost is defined as the loss of $100,000 being the future return from the best alternative project when it chooses to build the new warehouse instead of selling off the building.

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