The costs of three alternatives for a small water supply system are being evaluated: Option A has an initial cost of $100,000, an annual operating cost of $50,000, upgrading costs at year 4 of $30,000 and year 6 of $40,000, a salvage value of $30,000, and a design life of 10 years. Option B has an initial cost of $140,000 and an annual operating cost of $30,000. There is no salvage value, and the design life is 10 years. Option C has an initial cost of $350,000, a salvage value of $50,000, and annual operating costs of $15,000. It has an expected design life of 20 years. The MARR is 12%. a. Select the least cost alternative using Present Worth analysis. b. Select the least cost alternative using Equivalent Uniform Annual Cost analysis c. Select the least cost alternative using Rate of Return analysis (60 points)

Alarge university wanted to study the relationship between completing an internship during college and students' future earning potential. prom the same graduating class, they selected a random sample of 80 students who completed an internship and 100 students who did not complete an internship and examined their salaries five years after graduation. they found that there was a statistically higher mean salary for the internship group than for the noninternship group. which of the following interpretations is the most appropriate? a. there could be a confounding variable, such as student major, that explains the difference in mean salary between the internship and no internship groups.b. we cannot infer anything from these data since the distribution of salaries is likely right skewed.c. you cannot draw any valid conclusions because the sample sizes are different.d. more students should complete internships because having an internship produces a higher salary.

Which of the following has the largest impact on opportunity cost

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.