Hewitt inc. has entered into an equity swap arrangement that allows it to swap a fixed interest rate of 8 percent in exchange for the rate of appreciation on the dow jones industrial average each year over a three-year period. the notional principal is $1 million. if the dow depreciates by 1 percent, hewitt willa) have to make a payment of $70,000.b) have to make a payment of $90,000.c) receive a payment of $70,000.d) receive a payment of $90,000.e) none of the above

Q3. loral corporation manufactures parts for an aircraft company. it uses a computerized numerical controlled (cnc) machining center to produce a specific part that has a design (nominal) target of 1.275 inches with tolerances of ± 0.020 inch. the cnc process that manufactures these parts has a mean of 1.285 inches and a standard deviation of 0.005 inch. compute the process capability ratio and process capability index, and comment on the overall capability of the process to meet the design specifications.