Suppose you are given the yield curve as follows:

i₁ = 2%; i₂ = 3%; i₃ = 4%; i₄ = 5%. i₅ = 7%, i₁₀ = 10%. These represent the 1-year, 2-year, 3-year and 4-year, 5-year, 10-year bond yields today. Under the pure expectations theory, find a) the expected future one-year rates that will prevail from year 1 to year 2 b) from year 2 to year 3; & c) from year 3 to year 4.

Discuss how financial advisors use the shape of the curve in above questions as part of investment advice.

?

2. Consider the following data for a hypothetical economy that produces two goods, milk and honey.

1. Compute nominal GDP for each year in this economy.
2. Using year 1 as the base year, compute real GDP for each year. What is the percentage change in real GDP from year 1 to year 2?
3. Using year 1 as the base year, compute the price deflator for each year.
4. Now compute the GDP deflator for each year, using year 2 as the base year.
5. Explain why the measures of real GDP growth (and growth in the deflator) depend on the choice of base year.

Monty Industries is considering the purchase of new equipment costing $1,300,000 to replace existing equipment that will be sold for $194,000. The new equipment is expected to have a $223,000 salvage value at the end of its 4-year life. During the period of its use, the equipment will allow the company to produce and sell an additional 32,600 units annually at a sales price of $27 per unit. Those units will have a variable cost of $15 per unit. The company will also incur an additional $70,000 in annual fixed costs.

Identify the amount and timing of all cash flows related to the acquisition of the new equipment. (Enter negative amounts using a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

// The QuickCopy company currently makes 100,000 copies per year
// at 15 cents each.
// They expect to increase the number of copies produced
// by 4 percent per year each year for the next 10 years,
// starting with this year.
// They also expect the price of each copy to increase
// by 3 cents per year, starting with this year.
// This program displays the company's expected
// income for each of the next 10 years.
// Modify it to be more efficient.
start
Declarations
num year = 1
num copies = 100000
num price = 0.15
num total = 0
num COPIES_INCREASE = 0.04
num PRICE_INCREASE = 0.03
copies = copies + copies * COPIES_INCREASE
price = price + price * PRICE_INCREASE
total = total + copies * price
output year, total
year = year + 1
copies = copies + copies * COPIES_INCREASE
price = price + price * PRICE_INCREASE
total = total + copies * price
output year, total
year = year + 1
copies = copies + copies * COPIES_INCREASE
price = price + price * PRICE_INCREASE
total = total + copies * price
output year, total
year = year + 1
copies = copies + copies * COPIES_INCREASE
price = price + price * PRICE_INCREASE
total = total + copies * price
output year, total
year = year + 1
copies = copies + copies * COPIES_INCREASE
price = price + price * PRICE_INCREASE
total = total + copies * price
output year, total
year = year + 1
copies = copies + copies * COPIES_INCREASE
price = price + price * PRICE_INCREASE
total = total + copies * price
output year, total
year = year + 1
copies = copies + copies * COPIES_INCREASE
price = price + price * PRICE_INCREASE
total = total + copies * price
output year, total
year = year + 1
copies = copies + copies * COPIES_INCREASE
price = price + price * PRICE_INCREASE
total = total + copies * price
output year, total
year = year + 1
copies = copies + copies * COPIES_INCREASE
price = price + price * PRICE_INCREASE
total = total + copies * price
output year, total
year = year + 1
copies = copies + copies * COPIES_INCREASE
price = price + price * PRICE_INCREASE
total = total + copies * price
output year, total
stop

Conch Republic can manufacture the new smart phones for $300 each in variable costs. Fixed costs for the operation are estimated to run $4.3 million per year. The estimated sales volume is 75,000, 95,000, 125,000, 130,000, and 140,000 per year for the next five years, respectively. The unit price of the new smart phone will be $650. The necessary equipment can be purchased for $61 million and will be depreciated on a seven-year MACRS schedule. It is believed the value of the equipment in five years will be $3.4 million.Shelley believes that the unit sales, variable costs and equipment cost projections are accurate to ±20%.
Questions:
6. What is the best case NPV, IRR and PBP of the project?
7. What is the worst case NPV, IRR and PBP of the project? What would be your decision under the worst case scenario?

Please show working using excel:

Matlab code problems

I have to write a code using functions to find out if a year is a leap year. I'm on the write track i feel like but I keep getting an error message and matlab isnt helping to troubleshoot. The issue is on line 30. Here is my code:

function project_7_mfp()
%   PROJECT_7_ABC   project_7_abc() creates a function that prompts the user
%   enter a year after 1582 It then determines if it is a leap year
%
%   Name:
%   Date:
%   Class: CMPSC 200
%

   %   Print the splash screen using a printHeader() function
  
      
   % Prompt the user for the single data input for the program. This
   %   is the year. You will need to write a local function called getDataRange().
   %   Then call it here. The function will return a single input. The
   %   getDataRange function must error check the input to be sure that is at
   %   least 1582 when the Gregorian calenday was enacted.
  
   global debug
debug = 0;
  
   getDataRange('Enter the year: ', 1582, inf);
if(debug)
   fprintf('You entered %f\n', year);

end
  
%   Call isLeapYear(year) to check if the year is a leap year.
  
   isLeapYear(year);
   %   Use printResults to print if the year is a leap year or not
printResults(year, leap)


end

function getDataRange(prompt, a, b)
%   GETDATARANGE   getDataRange(prompt, a, b) is a wrapper function to enter
%   and error check that input. prompt is a variable storing the prompt to be
%   printed. a and b are the minimum and maximum values for the error checking
%
%   Name:      
%   Class:       CMPSC 200
%   Date:      
%
  
global debug

   year = input(prompt);
  
assignin('base','year',year)
if(debug)
fprintf('Calling the selection to check if the value is within range\n');
end
%error check
  
if ((year < a) || (year > b))
  
if(debug)
fprintf('The value is out of range so throw an exception and exit\n');
end
  
error('Entered value, %f, is outside of the range of %f to %f', year, a, b);
end
  
if (mod(year,1) ~=0)

   error('Entered value, %f, is not an integer', year);
end
  
end

function leap = isLeapYear(year)
%   ISLEAPYEAR   isLeapYear(year) checks the input to determine if it is a leap
%   year. If it is, the function returns 1. If it is not it returns 0
%
%   Name:      
%   Class:       CMPSC 200
%   Date:      
%
  
%failure

assignin('base','year',year)
   if (mod(year,400)==0)
leap = 1;

elseif (mod(year,100)==0)
leap = 0;
elseif (mod(year,4)==0)
leap = 1;
else
leap = 1;
  
end
  
  
  
  
end

function printResults(year, leap)
%   PRINTRESULTS   printResults(year, leap) prints a statement indicating
%   if the year is a leap year or if it is not.
%
%   Name:      
%   Class:       CMPSC 200
%   Date:      
%
   if leap == 1
fprintf('%f is a leap year', year);
elseif leap == 0
fprintf('%f is not a leap year', year);
end
  
  
  
  
  
  
end

As a winner of a breakfast cereal competition, you can choose one of the following prizes:

• $100,000 now.
• $100,000 at the end of 5 years.
• $10,000 a year forever (starting from this year).
• $11,000 a year forever (starting from next year).
• $2,000 next year and increasing thereafter by 2% a year forever
• $6,000 starting this year, growing at 1% per annum
• $800,000 at the end of 20 years
• $5,000 a year for 5 years starting next year
• $1,000 a year, starting this year for 12 payments
• $10,000 in year 2 and $50,000 in year 5

If the interest rate is 5%, which is the most valuable prize? Show your working for each.

Depreciation by Three Methods; Partial Years

Perdue Company purchased equipment on April 1 for $37,530. The equipment was expected to have a useful life of three years, or 4,860 operating hours, and a The estimated value of a fixed asset at the end of its useful life.residual value of $1,080. The equipment was used for 900 hours during Year 1, 1,700 hours in Year 2, 1,500 hours in Year 3, and 760 hours in Year 4.

Required:

Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the A method of depreciation that provides for equal periodic depreciation expense over the estimated life of a fixed asset.straight-line method, (b) A method of depreciation that provides for depreciation expense based on the expected productive capacity of a fixed asset. units-of-output method, and (c) the A method of depreciation that provides periodic depreciation expense based on the declining book value of a fixed asset over its estimated life.double-declining-balance method.

Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar.

a. Straight-line method

b. Units-of-output method

c. Double-declining-balance method