1.1.Jack works in the hardware section of a department store. A customer comes in and buys 3 gallons of paint and 7 brushes, and pays $69.96, including 6% sales tax. Another customer buys 2 gallons of paint and 3 brushes and pays $42.40, including sales tax. Find the price of a gallon of paint and that of a brush.
Paint $16.40 per gallon, brushes $2.40 each ?
1.2.The cash flows from two projects under different states of the economy are as follows:
State of the economy |
Probability |
Project A |
Project B |
Poor |
10% |
$13,000 |
$0 |
Average |
20% |
$14,000 |
$7000 |
Good |
70% |
$16,000 |
$16,000 |
Find the coefficient of correlation between the two projects.
Provide detailed step by step solution explaining in words on how you get to the answers. The answers are provided to you and highlighted, however you have to explain step by step on how you get to the answers: 1.1. Jack works in the hardware section of a department store. A customer comes in and buys 3 gallons of paint and 7 brushes, and pays $69.96, including 6% sales tax. Another customer buys 2 gallons of paint and 3 brushes and pays $42.40, including sales tax. Find the price of a gallon of paint and that of a brush. Paint $16.40 per gallon, brushes $2.40 each ♥ 1.2. The cash flows from two projects under different states of the economy are as follows: State of the economy Probability Project A Project B Poor 10% $13,000 $0 Average 20% $14,000 $7000 Good 70% $16,000 $16,000 Find the coefficient of correlation between the two projects. .9952 ♥ 1.3. Stewart Company has cost of capital 14%. The following function represents the shortage cost for its net working capital S = for x > 9 Here S is the shortage cost in thousands of dollars, and x is the level of the net working capital, also in thousands of dollars. Find the following: (A) The optimum level of net working capital. (B) The financing cost, shortage cost, and total cost at the optimal point. (A) $13,629, (B) $1908, $533, $2441 per year ♥ 1.4. Granger Company's cost of capital is 13%. It has invested x (million dollars) in current assets. The following function represents the shortage cost of current assets S = 9 e−x/5 Find the following: (A) The optimal level of current assets. (B) The shortage, financing, and total annual cost of these assets. (A) $13.140 million, (B) $650,000, $1.708 million, $2.358 million ♥ 141