ELEC 251 Lecture Notes - Lecture 7: Derivative Suit

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17 Feb 2020

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Exercises and calculations: the setpoint indicator in the controller reads. 33% and the transmitter range is set to 20-80 inches. Kc controller gain (positive for direct action, negative for reverse action); c transmitter output in psi; r setpoint transmitter output in psi (3 psi when set level = 0; 15psi when set level. Exercises and calculations: a direct acting proportional only controller has a gain setting of 4 and a base point of 9 psi. What is the output under the following conditions: set level equals measured level, measured level increases1 psi from (a), measured level decreases 2 psi from (a). Kc controller gain (positive for direct action, negative for reverse action); c transmitter output in psi; r setpoint transmitter output in psi (3 psi when set level = 0; 15psi when set level = 100) Exercises and calculations: a direct acting level controller is set up with a gain of 2 and no reset or derivative action.

Related Questions

The table below lists annual consumer price index and inflation rates for a country over the period 2005-2010. Assume the year 2005 is used as the base year.

Year	Consumer Price Index	Inflation Rate
2005	100
2006	115	B
2007	125	C
2008	140	D
2009	A	10%
2010	160	E

8.7%

120

25%

12%

The price index was 170 in the first year, 180 in the second year, and 195 in the third year. The inflation rate was about

5.9 percent between the first and second years, and 8.3 percent between the second and third years.

5.6 percent between the first and second years, and 7.7 percent between the second and third years.

10 percent between the first and second years, and 15 percent between the second and third years.

80 percent between the first and second years, and 95 percent between the second and third years.

0.1 points

QUESTION 17

The price index was 150 in the first year, 142.5 in the second year, and 138.2 in the third year. The economy experienced

		5.0 percent deflation between the first and second years, and 3.0 percent deflation between the second and third years.
		7.5 percent deflation between the first and second years, and 4.3 percent deflation between the second and third years.
		5.3 percent inflation between the first and second years, and 4.1 percent inflation between the second and third years.
		7.5 percent inflation between the first and second years, and 4.3 percent inflation between the second and third years

0.1 points

QUESTION 18

Which of the following statements is correct about the relationship between the nominal interest rate and the real interest rate?

The real interest rate is the nominal interest rate minus the rate of inflation.

The real interest rate is the nominal interest rate times the rate of inflation.

The real interest rate is the nominal interest rate plus the rate of inflation.

The real interest rate is the nominal interest rate divided by the rate of inflation.

0.1 points

QUESTION 19

If the nominal interest rate is 6 percent and the rate of inflation is 2 percent, then the real interest rate is

4 percent.

-4 percent.

3 percent.

8 percent.

0.1 points

QUESTION 20

If the nominal interest rate is 7 percent and the real interest rate is -2.5 percent, then the inflation rate is

9.5 percent.

4.5 percent.

-4.5 percent.

-9.5 percent.

. From 2009 to 2010, the CPI for education increased from 279.3 to 281.8. What was the inflation rate for education between 2009 and 2010?

0.9%

9.0%

2.5%

90%

If the consumer price index changes from 125 in September to 150 in October, what is the rate of inflation?

20.0%

45.5%

16.7%

9.1%

. Suppose a basket of goods and services has been selected to calculate the CPI and 2014 has been selected as the base year. In 2013, the basketâs cost was $80; in 2014, the basketâs cost was $86; and in 2015, the basketâs cost was $90. The value of the CPI in 2015 was

104.6 and the inflation rate was 4.6%.

112.5 and the inflation rate was 4.6%.

112.5 and the inflation rate was 12.5%.

104.6 and the inflation rate was 12.5%.

Suppose a basket of goods and services has been selected to calculate the CPI. In 2002, the basketâs cost was $80; in 2008, the basketâs cost was $92; and in 2010, the basketâs cost was $108. The base year must be

The base year cannot be determined from the given information.

2002

2008

one of the years between 2008 and 2010.

Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been chosen as the base year. In 2012, the basketâs cost was $80.00; in 2013, the basketâs cost was $84; and in 2014, the basketâs cost was $87.60. The value of the CPI was

All of the above are correct.

109.5 in 2014.

105 in 2013.

100 in 2012.

Which of the following is correct?

The CPI is better than the GDP deflator at reflecting the goods and services bought by consumers.

The GDP deflator is better than the CPI at reflecting the goods and services bought by consumers.

The GDP deflator and the CPI are equally good at reflecting the goods and services bought by consumers.

The GDP deflator is more commonly used as a gauge of inflation than the CPI is.

The inflation rate is defined as the

percentage change in the price level from the previous period.

price level in an economy.

change in the price level from one period to the next.

price level minus the price level from the previous period.

Economists use the term inflation to describe a situation in which

the economy's overall price level is rising.

some prices are rising faster than others.

the economy's overall price level is high, but not necessarily rising.

the economy's overall output of goods and services is rising faster than the economy's overall price level.

Please show work for both problems and I will give a thumbs up!

5. You are considering the purchase of a quadruplex apartment building. Effective gross income during the first year of operations is expected to be $33,600 ($700 per month per unit). First-year operating expenses are expected to be $13,440 (at 40 percent of EGI). Ignore capital expenditures. The purchase price of the quadruplex is $200,000. The acquisition will be financed with $60,000 in equity and a $140,000 standard fixed-rate mortgage. The interest rate on the debt financing is 8 percent and the loan term is 30 years. Assume, for simplicity, that payments will be made annually and that there are no up-front financing costs.

a. What is the overall capitalization rate?

b. What is the effective gross income multiplier?

c. What is the equity dividend rate (the before-tax return on equity)?

d. What is the debt coverage ratio?

e. Assume the lender requires a minimum debt coverage ratio of 1.2. What is the largest loan that you could obtain if you decide that you want to borrow more than $140,000?

12. An office building is purchased with the following projected cash flows:

â¢ NOI is expected to be $130,000 in year 1 with 5 percent annual increases.

â¢ The purchase price of the property is $720,000.

â¢ 100 percent equity financing is used to purchase the property.

â¢ The property is sold at the end of year 4 for $860,000 with selling costs of 4 percent.

â¢ The required unlevered rate of return is 14 percent.

a. Calculate the unlevered internal rate of return (IRR).

b. Calculate the unlevered net present value (NPV).

2. Health Care Event Protection. Christina Haley of San Marcos, Texas, age 57, recently suffered a stroke. She was in intensive care for 3 days and was hospitalized for 10 more days. Her total bill for this care was $125,500. After being discharged from the hospital, she spent 25 days in a nursing home at a cost of $170 per day. Christina, who earns $4,500 per month, missed two months of work. Christina had a health insurance plan through her employer. The policy had a $1000 deductible and an 80/20 coinsurance clause with a $2000 coinsurance cap. She had also accumulated 21 sick days (equivalent to one month) at work. Otherwise she had no long-term care or disability income insurance.

(a) How much of Christina's direct medical expenses was paid by her insurance policy?

(b) What did Christina have to pay for her nursing home care?

1. Calculating Life Insurance Need. Review the material in âHow Much Life Insurance Do You Need?â on pages 351â354. Then using dollar amounts that fit your personal situation, complete Worksheet 48: Determining My Life Insurance Needs from âMy Personal Financial Planner.â If you are currently single and childless, for the purposes of this activity, assume that you are 30 years old, have two children under age 5, are married, and earn $60,000 per year and redo the estimate of need. How would having a family change your need for life insurance?

Determining My Life Insurance Needs (page 353)

NOTE: Results here may differ slightly than when using Appendix A in text due to rounding.

Factors Affecting Need

Sample Only

Insert Your Own Figures

1. Income-replacement needs*

$823,219

2. Final-expense needs

$ 12,000

3. Readjustment-period needs

$ 19,000

4. Debt-repayment needs

$ 10,000

5. College-expense needs

$ 75,000

6. Other special needs

$ -

7. Subtotal (combined effects of items 1â6)

$ 939,219

8. Government benefits**

$390,370

9. Investment Assets Available

10. Current Life Insurance In Place

$ 98,000

11. Life insurance needed

$ 450,848

*Income Replacement Needs Calculator

Current Annual Income

$56,000

Percent of Annual Income To Be Replaced

75%

Annuity Amount (% desired of annual income)

$42,000

i (assumed interest rate

3.00%

n (number of annuity payments)

PV (present value) of Income Replacement Needs

$823,219

**Present Value of Social Security Benefits Calculator

Estimated Monthly Benefit (See Appendix B in Text)

$2,725.00

Estimated Annual Benefit

$32,700

i (assumed interest rate

3.00%

n (number of annuity payments)

PV (present value) of Government Benefits

$390,370

Profits have been decreasing for several years at PegasusAirlines. In an effort to improve the companyâs performance,consideration is being given to dropping several flights thatappear to be unprofitable.

Atypical income statement for one round-trip of one such flight(flight 482) is as follows:


Ticket revenue (110seats Ã 40% occupancy Ã $65 ticket price)	$	2,860	100	%
Variable expenses($13.00 per person)		572	20

Contributionmargin		2,288	80	%

Flightexpenses:
Salaries, flight crew	$	320
Flight promotion		680
Depreciation of aircraft		460
Fuel for aircraft		180
Liability insurance		240
Salaries, flight assistants		720
Baggage loading and flightpreparation		200
Overnight costs for flight crew and assistants at destination		80

Total flightexpenses		2,880

Net operatingloss	$	(592)

The following additionalinformation is available about flight 482:

a.	Members of the flight crew are paid fixed annual salaries,whereas the flight assistants are paid based on the number of roundtrips they complete.
b.	One-third of the liability insurance is a special chargeassessed against flight 482 because in the opinion of the insurancecompany, the destination of the flight is in a "high-risk" area.The remaining two-thirds would be unaffected by a decision to dropflight 482.
c.	The baggage loading and flight preparation expense is anallocation of ground crews' salaries and depreciation of groundequipment. Dropping flight 482 would have no effect on thecompany's total baggage loading and flight preparationexpenses.
d.	If flight 482 is dropped, Pegasus Airlines has no authorizationat present to replace it with another flight.
e.	Aircraft depreciation is due entirely to obsolescence.Depreciation due to wear and tear is negligible.
f.	Dropping flight 482 would not allow Pegasus Airlines to reducethe number of aircraft in its fleet or the number of flight crew onits payroll.

Required:

Prepare an analysis showing what impact dropping flight 482would have on the airline's profits. (Any losses/reductions should be indicated by a minus sign.)

contribution margin lost if the tour isdiscontinued
less flight costs that can be avoided if the flightis discontinued
flight promotion
fuel for aircraft
liabiity insurance
salaries, flight assistants
over night costs for flight assistants andcrew
net increase (decrease) in profits if flight isdisconinued

Question 2:

Polaski Company manufactures andsells a single product called a Ret. Operating at capacity, thecompany can produce and sell 36,000 Rets per year. Costs associatedwith this level of production and sales are given below:

	Unit		Total
Directmaterials	$	25	$	900,000
Direct labor		8		288,000
Variablemanufacturing overhead		3		108,000
Fixed manufacturingoverhead		5		180,000
Variable sellingexpense		4		144,000
Fixed sellingexpense		6		216,000

Total cost	$	51	$	1,836,000

The Rets normally sell for $56each. Fixed manufacturing overhead is constant at $180,000 per yearwithin the range of 29,000 through 36,000 Rets per year.

Required:
1.	Assume that due to a recession, Polaski Company expects to sellonly 29,000 Rets through regular channels next year. A large retailchain has offered to purchase 7,000 Rets if Polaski is willing toaccept a 16% discount off the regular price. There would be nosales commissions on this order; thus, variable selling expenseswould be slashed by 75%. However, Polaski Company would have topurchase a special machine to engrave the retail chainâs name onthe 7,000 units. This machine would cost $14,000. Polaski Companyhas no assurance that the retail chain will purchase additionalunits in the future. Determine the impact on profits next year ifthis special order is accepted.

Refer to the original data. Assume again that Polaski Companyexpects to sell only 29,000 Rets through regular channels nextyear. The U.S. Army would like to make a one-time-only purchase of7,000 Rets. The Army would pay a fixed fee of $1.60 per Ret, and itwould reimburse Polaski Company for all costs of production(variable and fixed) associated with the units. Because the armywould pick up the Rets with its own trucks, there would be novariable selling expenses associated with this order. If PolaskiCompany accepts the order, by how much will profits increase ordecrease for the year?

Assume the same situation as that described in (2) above, exceptthat the company expects to sell 36,000 Rets through regularchannels next year. Thus, accepting the U.S. Armyâs order wouldrequire giving up regular sales of 7,000 Rets. If the Armyâs orderis accepted, by how much will profits increase or decrease fromwhat they would be if the 7,000 Rets were sold through regularchannels?

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ELEC 251 Lecture Notes - Lecture 7: Derivative Suit

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