Question: Gwynyth is considering two different proposals. Proposal 1 is expected to generate profits of $250,000 for each of the next 9 years. Proposal 2 expects

Gwynyth is considering two different proposals.

Gwynyth is considering two different proposals. Proposal 1 is expected to generate profits of $250,000 for each of the next 9 years. Proposal 2 expects to generate $300,000 for each of the next 7 years. If the interest rate is 4%, which proposal should she select? A) Who cares? I'm graduating B) Proposal 2 is worth more today C) Proposal 1 is worth more today D) Doesn't matter, they're equal Mark's business is considering financing a piece of equipment. They can have the equipment for 40 quarterly payments (payments made every 3 months) of $12,000. Mark wants to compare this to other options. If the current annual interest rate is 2%, what is the Present Value of this loan? $434,066.73 B) $463,975.91 C) $205,909.04 $328,265.75 Aaron manages a call center that during a peak hour receives an average of 134 calls that last an average of 6 minutes. The client company has informed him they plan to televise a commercial during the first half of an overwhelmingly popular world-wide sports-ball championship, promising a special deal to the first 1,000 callers. If the client can live with a 1% blocking chance, how many customer service representatives does he need to have standing by during the championship? B) 12.8 A) Erlangs cannot model this event C) 13.4 D) 21

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