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13 days ago

West Virginia has one of the highest divorce rates in the nation with an annual rate of approximately 5 divorces per 1000 people

(Centers for Disease Control and Prevention website, January 12, 2012). The Marital Counseling Center, Inc. (MCC) thinks that the high divorce rate in the state may require them to hire additional staff. Working with a consultant, the management of MCC has developed the following probability distribution for x = the number of new clients for marriage counseling for the next year.
West Virginia has one of the highest divorce rates

a. Is this probability distribution valid?
SelectYesNoItem 1

Explain.

f(x) Selectgreater than or equal to 0less than or equal to 0greater than or equal to 1less than or equal to 1Item 2
?f(x) Selectequal to 1not equal to 1greater than 1less than 1Item 3
b. What is the probability MCC will obtain more than 30 new clients (to 2 decimals)?

c. What is the probability MCC will obtain fewer than 20 new clients(to 2 decimals)?

d. Compute the expected value and variance of x.

Expected value clients per year
Variance squared clients per year

Business

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A. Payback Period

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B. Internal Rate of Return (IRR)

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C. Simple Rate of Return

The simple rate of return is 18%, indicating the project should be accepted since it surpasses the required return rate.

D. Net Present Value

The NPV is calculated at $4,647.85, thus the project should be approved as the NPV is greater than zero.

Clarification:

Year Cash Flow

0 -$10,000

1 $2,400

2 $4,800

3 $3,200

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6 $2,400

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I employed a financial calculator to find both the NPV and IRR.

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Thus, the payback period is 2.875 years

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Annual depreciation expense = $10,000 / 6 = $1,667

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2 months ago

Beckham Broadcasting Company (BBC) has operating income (EBIT) of $2,500,000. The company's depreciation expense is $500,000 and

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Answer:

The right choice is option (D).

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