Your firm is evaluating a project that will generate the following cash flows next year with the following probabilities: Cash Flow at t=1 Probability Good Case $600M 0.75 Bad Case $200M 0.25 You have debt due in one year in the amount of $250M. In case of a default, % of the cash flows will be lost due to bankruptcy costs. Assume the proper discount rate for all cash flows is %. How much are expected bankruptcy costs today? You can either solve for expected bankruptcy costs directly, or by calculating how much less will your levered firm (V-L) be worth today compared to an unlevered firm (V-U)? Enter your answer in MILLIONS of dollars; if your answer is $67.8935 MILLION, enter 67.89.

Which statement most represents the fallacy listed below: “Since crime has gone up dramatically, if we don’t buy this new security system right now, our house is definitely going to get broken into!”

What is a common way statistics can be deceptive? 

What does the concept of “rival causes” refer to in critical thinking? 

Which of the following questions would help uncover value assumptions?

Instructions: You have 3 hours (8PM – 11PM) to complete the exam.  This is a closed book and closed notes exam. Only a physical scientific calculator is allowed. No graphing calculators, electronic devices, books, notes, or other reference materials are permitted during the exam. You may only use a pen or pencil and blank scratch paper. Write all answers clearly in the space provided and show all necessary work to receive full credit. If you need additional space or prefer to write your solutions on separate sheets, you may do so. In that case, clearly label each sheet with your name and the corresponding question number. After completing the questions, scan your solutions and upload them to Canvas as a SINGLE .pdf file. You may use your phone to scan your work. Then, either share the file with your computer or email it to yourself in order to upload it. Ensure that all pages are legible, properly ordered, and clearly labeled with your name. Now you can start. Exam 2 – make up.pdf

What is one ecological mechanism or process responsible for the high species richness of prey species at intermediate levels of consumer abundance, and how does that mechanism function?

A safety engineer feels that 30% of all industrial accidents in her plant are caused by failure of employees to follow instructions. If this figure is correct, find approximately, the probability that among 84 industrialized accidents in this plant anywhere from 20 to 30 (inclusive) will be due to failure of employees to follow instructions. Use the normal distribution approximation. (10 points)

A stamping machine produces can tops whose diameters are normally distributed with a standard deviation of 0.01 inch. At what “normal” (mean) diameter should the machine be set so that no more than 5% of the can tops produced have diameters exceeding 3 inches? (10 points)

Find the area of the shaded region. Show all your detailed work on scrap paper.