Furniture manufacturing companies often deal with the quality of the drilling of dowel holes. consider the case of company x, which believes that when the drilling process is operating at an acceptable rate, the upper limit on the percentage of incorrectly drilled dowel holes is 8%. to monitor its drilling process, the company randomly samples 12 products each hour and determines if the dowel hole in each product is correctly drilled or not. if, in the sample of 12 holes, 1 or more incorrectly drilled holes isdiscovered, the production process is stopped and the drilling process is recalibrated. use this information to complete parts a through c. a. if the process is really operating correctly (p=0.08), what is the probability that the sampling effort will produce x=0 defective holes and thus the process will properly be left to continue running? (round 4 decimal places as needed.)

The gilbert instrument corporation is considering replacing the wood steamer it currently uses to shape guitar sides. the steamer has 6 years of remaining life. if kept,the steamer will have depreciaiton expenses of $650 for five years and $325 for the sixthyear. its current book value is $3,575, and it can be sold on an internet auction site for$4,150 at this time. if the old steamer is not replaced, it can be sold for $800 at the endof its useful life. gilbert is considering purchasing the side steamer 3000, a higher-end steamer, whichcosts $12,000 and has an estimated useful life of 6 years with an estimated salvage value of$1,500. this steamer falls into the macrs 5-year class, so the applicable depreciationrates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. the new steamer is fasterand allows for an output expansion, so sales would rise by $2,000 per year; the newmachine's much greater efficiency would reduce operating expenses by $1,900 per year.to support the greater sales, the new machine would require that inventories increase by$2,900, but accounts payable would simultaneously increase by $700. gilbert's marginalfederal-plus-state tax rate is 40%, and its wacc is 15%.a. should it replace the old steamer? b. npv of replace = $2,083.51