For CB output, you should paste the forecast output in your Excel calculations file. Show the split view in all CB output.

1.   Two investments (A and B, below) have been proposed to the Capital Investment committee of your organization;

a.      The required rate of return for your company is 15%. What is the NPV for each investment? Assume the initial investments ($150k and $50k) occur at the beginning of the year and all other costs and benefits occur at the end of the year indicated. Ignore inflation.

b.     What is the payback period for each investment?

c.      Which investment would you recommend and why?

d.     Why might you recommend the other investment?

2.     Unfortunately, the Capital Investment Committee refused to approve your recommendation (Problem 1) since you did not consider the uncertainty inherent in these types of investments. You pull out your very dog-eared notes from PMAN 635 and repeat your analysis, this time using Crystal Ball and the following information:

Investment A:

                                                    i.     Year 0 Investment cost: Triangular distribution (optimistic: $125,000; most likely: $150,000; pessimistic: $200,000)

                                                  ii.     Year 1-5 operating cost: Normal distribution (mean of $5,000, standard deviation of $500)

                                                iii.     Year 1 Benefits: Normal distribution (mean of $75,000, standard deviation of $20,000)

                                                iv.     Year 2 Benefits: Normal distribution (mean of $55,000, standard deviation of $15,000)

                                                  v.     Year 3 Benefits: Normal distribution (mean of $35,000, standard deviation of $10,000)

                                                vi.     Year 4 Benefits: Normal distribution (mean of $20,000, standard deviation of $5000)

                                               vii.     Year 5 Benefits: Uniform distribution (Minimum: $60,000; Maximum: $70,000)

Investment B:

                                             viii.     Year 0 Investment cost: Uniform distribution (Minimum: $40,000; Maximum: $60,000)

                                                ix.     Year 1 Benefits: Normal distribution (mean of $30,000, standard deviation of $3,000)

                                                  x.     Year 2 Benefits: Normal distribution (mean of $15,000, standard deviation of $5,000)

                                                xi.     Year 3 Benefits: Normal distribution (mean of $10,000, standard deviation of $3,000)

                                               xii.     Year 4 Benefits: Normal distribution (mean of $10,000, standard deviation of $3,000)

                                             xiii.     Year 5 Benefits: Normal distribution (mean of $15,000, standard deviation of $5,000)

a.      If the IRR is still 15%, use Crystal Ball to calculate the median NPV for each investment. Would you still prefer the same investment you recommended in question 1.c?

b.      What is the probability that Investment B will be better than Investment A (financially)?

Be sure to show all work.

3.     Using the forward and backward pass method, identify the Critical Path and total duration for the following network. Show all work.

I can't get the number of days to print. Here is my code:

public static void main(String[] args) { // Prompt the user to enter year Scanner scanner = new Scanner(System.in); // Prompt the user to enter year System.out.print("Enter full year (e.g., 2016): "); int year = scanner.nextInt(); for(int i = 1; i <= 12; i++) printMonth(year, i); } /** Print the calendar for a month in a year */ static void printMonth(int year, int month) { // Print the headings of the calendar printMonthTitle(year, month); // Print the body of the calendar printMonthBody(year, month); } /** Print the month title, e.g., May, 1999 */ static void printMonthTitle(int year, int month) { System.out.println(" " + getMonthName(month) + " " + year); System.out.println("-----------------------------"); System.out.println(" Sun Mon Tue Wed Thu Fri Sat"); } /** Get the English name for the month */ static String getMonthName(int month) { String monthName = null; switch (month) { case 1: monthName = "January"; break; case 2: monthName = "February"; break; case 3: monthName = "March"; break; case 4: monthName = "April"; break; case 5: monthName = "May"; break; case 6: monthName = "June"; break; case 7: monthName = "July"; break; case 8: monthName = "August"; break; case 9: monthName = "September"; break; case 10: monthName = "October"; break; case 11: monthName = "November"; break; case 12: monthName = "December"; } return monthName; } /** Print month body */ static void printMonthBody(int year, int month) { // Get start day of the week for the first date in the month int startDay = getStartDay(year, month); // Get number of days in the month int numberOfDaysInMonth = getNumberOfDaysInMonth(year, month); // Pad space before the first day of the month int i = 0; for (i = 0; i < startDay; i++) System.out.print(" "); for (i = 1; i <= numberOfDaysInMonth; i++) { if (i < 10) System.out.print(" " + i); else System.out.print(" " + i); if ((i + startDay) % 7 == 0) System.out.println(); } System.out.println(); } /** Get the start day of the first day in a month */ static int getStartDay(int year, int month) { // Get total number of days since 1/1/1800 int startDay1800 = 3; int totalNumberOfDays = getTotalNumberOfDays(year, month); // Return the start day return (totalNumberOfDays + startDay1800) % 7; } /** Get the total number of days since January 1, 1800 */ static int getTotalNumberOfDays(int year, int month) { int total = 0; // Get the total days from 1800 to year - 1 for (int i = 1800; i < year; i++) if (isLeapYear(i)) total = total + 366; else total = total + 365; // Add days from Jan to the month prior to the calendar month for (int i = 1; i < month; i++) total = total + getNumberOfDaysInMonth(year, i); return total; } /** Get the number of days in a month */ static int getNumberOfDaysInMonth(int year, int month) { if (month == 1 || month == 3 || month == 5 || month == 7 || month == 8 || month == 10 || month == 12) return 31; else if (month == 4 || month == 6 || month == 9 || month == 11) return 30; else if (month == 2) return isLeapYear(year) ? 29 : 28; return 0; // If month is incorrect } /** Determine if it is a leap year */ static boolean isLeapYear(int year) { return year % 400 == 0 || (year % 4 == 0 && year % 100 != 0); }

what is the present worth of $2,757 in year 1 and amounts increasing by $109 per year through year 5 at an interest rate of 10% per year?

if an investment account gives 5% interest annually, how much equal annual deposits you have to make for 10 years starting year 1 to have a $174,468 at your account at the end of this investment.

After Andy completes college, he has two job options. Option 1 will give him $40,000 in the first year and $45,000 in the second year. Option 2 will give him $35,000 in the first year and $50,000 in the second year. Nominal interest rate is 5%. What is the discounted present value of his two-year flow of nominal income for option 1?

A company prices its tornado insurance using the following assumptions:
• In any calendar year, there can be at most one tornado.
• In any calendar year, the probability of a tornado is 0.04.
• The number of tornadoes in any calendar year is independent of the number of tornados in any other calendar year.
Using the company's assumptions, calculate the probability that there are fewer than 4 tornadoes in a 20-year period.

Havana, Inc., has identified an investment project with the following cash flows. If the discount rate is 10 percent, what is the future value of these cash flows in Year 7? (Hint: Be careful with the number of periods.) If the picture doesn't load, the cash flows shown in the picture are as follows: 910 in year 1; 1140 in year 2; 1360 in year 3; and 2100 in year 4.

You are presented with an investment opportunity that will give you the following stream of cash flows: nothing for the next 5 years; at the following year, an amount of $3,000 per year until year 10; and then an amount of $8,000 per year until year 25. If your required rate of return (APR) is 12% compounded annually, what is the present value today of these cash flows?

Linkers: There is a freshly issued 10‐year inflation‐linked bond with a

face value of 1,000. Inflation in the coming year is 3%. What is the principal at the beginning

and end of this year and the coupon this year and next year, for A) a zero‐coupon inflation

indexed bond? B) a bond with 5% annual coupon rate that is interest‐indexed, and C) a

bond with a 5% coupon rate that is capital‐indexed?

A new $110,000 machine will be depreciated using a 5-year MACRS schedule. It should generate $45,000 per year in additional revenues, and $20,000 per year in additional cash operating costs per year. If the firm has a tax rate of 39%, calculate the year 4 incremental net operating cash flow.