4.Swan Manufacturing is approached by a customer to fulfill a one-time-only special order for a product similar to one offered t

Response:

Greg's profit from the apartment sale = $590,000

Details:

Cost of purchase = $100,000

Renovations = $300,000

Overall Initial Cost = Cost of Purchase + Renovations

Overall Initial Cost = $100,000 + $300,000

Overall Initial Cost = $400,000

Depreciation over 20 Years = Yearly Depreciation * 20

= $2,500 * 20

= $50,000

Net Value after 20 Years = Initial Cost - Depreciation over 20 Years

= $400,000 - $50,000

= $350,000

Capital Gain = Net Sale Price - Net Value

When Net Sale Price = Selling Price - Commission

= $1,000,000 - $60,000

= $940,000

Thus, Capital Gain = Net Sale Price - Net Value

Capital Gain = $940,000 - $350,000

Capital Gain = $590,000

Answer:

Today's present value deposit = 216,886 (Approx)

Explanation:

Given:

Duration (n) = 16 years x 4 quarters = 64

Interest rate (r) = 1.6% = 0.016 / 4 = 0.004

Future value = $280,000

Present value =?

Calculation for today's necessary deposit:

Present value deposit today = 216,886 (Approx)

Answer:

Probability = 0.3557

Explanation:

Data provided

Young adults age range = 20 to 39

Proportion skipping breakfast p = 0.238

Sample size n = 500

Objective

We aim to determine the probability that more than 122 of Lance's sampled individuals do not eat breakfast regularly.

Solution

Utilizing the Normal Approximation for the Binomial Distribution,

let's define our random variable as x:

x ~ Bin (n,p).............1

Using Normal Approximation gives us:

x ~ Normal Approx (np, npq).................2

This simplifies to:

x ~ (500, 0.238)  

where we know q will be:

q = 1 - p

q = 1 - 0.238

q = 0.762.............3

Hence, we find:

x ~ Normal Approx (119, 90.678)

Now we want to compute P(X > 122).

First, we convert this to Z:

z = ................4

Where the mean is = np

and standard deviation is

For P(X > 122, we evaluate:

............5

This results in P(Z > 0.37).

Thus,

Probability = 1 - P(Z < 0.37)

Next, we'll refer to the z table:

Probability = 1-0.6443

Probability = 0.3557