Answer:
Explanation:
If r is the number of successes out of n trials , then the sample proportion of success =
For binomial experiment , if the population probability of success p on a single trial is not given , then the best point estimate for probability of success p on a single trial is the sample proportion of successes.
i.e. a point estimate for the probability of success p on a single trial :
Hence, a point estimate for the probability of success p on a single trial =
Answer:
Machine B EAC is $17,705.78 more than Machine A EAC.
Explanation:
First find the present values of the cost of both machines.
Machine A:
= 200,000 + (15,000 * Present value of annuity interest factor, 15%, 8 years)
= 200,000 + ( 15,000 * 4.4873)
= $267,309.50
Machine B
= 300,000 + (17,500 * Present value of annuity interest factor, 15%, 10 years)
= 300,000 + 17,500 * 5.0188
= $387,829
Equivalent Annual cost Machine A:
= [(NPV * Required return) / 1 - (1 + Required return) ^–Number of Periods
=[(267,309.50 * 15%) / 1 - 1.15⁻⁸
= $59,569.95
Equivalent Annual cost Machine B:
= (387,829 * 15%) / (1 - 1.15⁻¹⁰)
= $77,275.73
Difference:
= 77,275.73 - 59,569.95
= $17,705.78
