Metro Bus System The Management of the Metro Bus System of Houston,TX Was

question 95

Short Answer

Metro Bus System
The management of the Metro Bus System of Houston,TX was faced with the task of improving efficiency in terms of running on time.One of its greatest problems was breakdown of equipment.Between 1994 and 1997,emphasis was placed on maintenance.Random samples of 10,000 bus runs were taken from the records of 1994 and 1997.The percentage of breakdowns in 1994 was 0.4 and in 1997 it was 0.04.Use a chi-square test for equal proportions to analyze these data.
-What is the value of the test statistic?

Compute the internal rate of return (IRR) and understand its role in investment decisions.

Distinguish between cash flows and accounting profit in investment appraisal.

Identify and calculate the average investment amount in capital budgeting analysis.

Explain the significance of the hurdle rate and how it is used in investment decisions.