1) A sample, of size 54 drawn from normal distribution for stock returns has mean of= 12% and a standard deviation of= 30%. Determine the probability that the return greater than 8% will be observed?
i) 16.35%
ii) 83.65%
iii) 66.67%
2) A $1,000,000 investment is depreciated using a 7-year MACRS class life. It needs $150,000 in extra inventory and will rise accounts payable by= $50,000. It will make $400,000 in revenue and $150,000 in cash expenses annually, and tax rate is= 40%. Determine the incremental cash flow in years 0, 1, 7, and 8?
Requirements
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