1. Delicious Snacks, Inc. is considering adding a new line of candies to its current product line. The company already paid $300,000 for a marketing research study that provided evidence about the demand for this product at this time. The new line will require an additional investment of $50,000 in raw materials to produce the candies. The project’s life is 7 years and the firm estimates sales of 500,000 packages at a price of $5 per unit the first year; but this volume is expected to grow at 12% for the next three years, 10% for the last three years of the project. The price per unit is expected to grow at 5% for the next two years, and then at the historical average rate of inflation of 3% for the last four years of the project. The variable costs will be 65% of sales and the fixed costs will be $450,000.

The equipment required to produce the candies will cost $1,400,000, and will require an additional $50,000 to have it delivered and installed. This equipment has an expected useful life of 7 years and will be depreciated using the MACRS 5-year class life. After 7 years, the equipment can be sold at a price of $200,000. The cost of capital is 12% and the firm’s marginal tax rate is 35%.

1. Calculate the initial investment, annual after-tax cash flows for each year, and the terminal cash flow.
2. Determine the payback period, discounted payback period, NPV, PI, IRR, and MIRR of the new line of candies. Should the firm accept or reject the project?
3. The firm is considering three scenarios for the new line of cookies and bars. Under the best, base, and worst case scenario the firm will sell 450,000, 500,000, and 600,000 packages the first year with the same expected growth rates in units and price described in the problem. Re-examine the decision criteria in part (a) under each of these scenarios.

Create a ShoppingCart class in java that simulates the operation of a shopping cart. The ShoppingCart instance should contain a BagInterface implementation that will serve to hold the Items that will be added to the cart. Use the implementation of the Item object provided in Item.java. Note that the price is stored as the number of cents so it can be represented as an int (e.g., an Item worth $19.99 would have price = 1999).

Using the CLASSES BELOW Your shopping cart should support the following operations:

•  Add an item

•  Add multiple quantities of a given item (e.g., add 3 of Item __)

•  Remove an unspecified item

•  Remove a specified item

•  Checkout – should "scan" each Item in the shopping cart (and display its ***IMPORTANT

  information), sum up the total cost and display the total cost

•  Check budget – Given a budget amount, check to see if the budget is large ***IMPORTANT

  enough to pay for everything in the cart. If not, remove an Item from the shopping cart, one at a time, until under budget.

  Write a driver program to test out your ShoppingCart implementation.

*Item Class*

/**

* Item.java - implementation of an Item to be placed in ShoppingCart

*/

public class Item

{

private String name;

private int price;

private int id;//in cents

//Constructor

public Item(int i, int p, String n)

{

name = n;

price = p;

id = i;

}

public boolean equals(Item other)

{

return this.name.equals(other.name) && this.price == other.price;

}

//displays name of item and price in properly formatted manner

public String toString()

{

return name + ", price: $" + price/100 + "." + price%100;

}

//Getter methods

public int getPrice()

{

return price;

}

public String getName()

{

return name;

}

}

BAG INTERFACE CLASS

/**

* BagInterface.java - ADT Bag Type

* Describes the operations of a bag of objects

*/

public interface BagInterface<T>

{

//getCurrentSize() - gets the current number of entries in this bag

// @returns the integer number of entries currently in the bag

public int getCurrentSize();

//isEmpty() - sees whether the bag is empty

// @returns TRUE if the bag is empty, FALSE if not

public boolean isEmpty();

//add() - Adds a new entry to this bag

// @param newEntry - the object to be added to the bag

// @returns TRUE if addition was successful, or FALSE if it fails

public boolean add(T newEntry);

//remove() - removes one unspecified entry from the bag, if possible

// @returns either the removed entry (if successful), or NULL if not

public T remove();

//remove(T anEntry) - removes one occurrence of a given entry from this bag, if possible

// @param anEntry - the entry to be removed

// @returns TRUE if removal was successful, FALSE otherwise

public boolean remove(T anEntry);

//clear() - removes all entries from the bag

public void clear();

//contains() - test whether this bag contains a given entry

// @param anEntry - the entry to find

// @returns TRUE if the bag contains anEntry, or FALSE otherwise

public boolean contains(T anEntry);

//getFrequencyOf() - count the number of times a given entry appears in the bag

// @param anEntry - the entry to count

// @returns the number of time anEntry appears in the bag

public int getFrequencyOf(T anEntry);

//toArray() - retrieve all entries that are in the bag

// @returns a newly allocated array of all the entries in the bag

// NOTE: if bag is empty, it will return an empty array

public T[] toArray();

}

Create a ShoppingCart class in java that simulates the operation of a shopping cart. The ShoppingCart instance should contain a BagInterface implementation that will serve to hold the Items that will be added to the cart. Use the implementation of the Item object provided in Item.java. Note that the price is stored as the number of cents so it can be represented as an int (e.g., an Item worth $19.99 would have price = 1999).

**PLEASE USE THE CLASSES BELOW*** to show Your shopping cart should support the following operations:

•  Add an item

•  Add multiple quantities of a given item (e.g., add 3 of Item __)

•  Remove an unspecified item

•  Remove a specified item

•  Checkout – should "scan" each Item in the shopping cart (and display its ***IMPORTANT

  information), sum up the total cost and display the total cost

•  Check budget – Given a budget amount, check to see if the budget is large ***IMPORTANT

  enough to pay for everything in the cart. If not, remove an Item from the shopping cart, one at a time, until under budget.

  Write a driver program to test out your ShoppingCart implementation.

*Item Class*

/**

* Item.java - implementation of an Item to be placed in ShoppingCart

*/

public class Item

{

private String name;

private int price;

private int id;//in cents

//Constructor

public Item(int i, int p, String n)

{

name = n;

price = p;

id = i;

}

public boolean equals(Item other)

{

return this.name.equals(other.name) && this.price == other.price;

}

//displays name of item and price in properly formatted manner

public String toString()

{

return name + ", price: $" + price/100 + "." + price%100;

}

//Getter methods

public int getPrice()

{

return price;

}

public String getName()

{

return name;

}

}

BAG INTERFACE CLASS

/**

* BagInterface.java - ADT Bag Type

* Describes the operations of a bag of objects

*/

public interface BagInterface<T>

{

//getCurrentSize() - gets the current number of entries in this bag

// @returns the integer number of entries currently in the bag

public int getCurrentSize();

//isEmpty() - sees whether the bag is empty

// @returns TRUE if the bag is empty, FALSE if not

public boolean isEmpty();

//add() - Adds a new entry to this bag

// @param newEntry - the object to be added to the bag

// @returns TRUE if addition was successful, or FALSE if it fails

public boolean add(T newEntry);

//remove() - removes one unspecified entry from the bag, if possible

// @returns either the removed entry (if successful), or NULL if not

public T remove();

//remove(T anEntry) - removes one occurrence of a given entry from this bag, if possible

// @param anEntry - the entry to be removed

// @returns TRUE if removal was successful, FALSE otherwise

public boolean remove(T anEntry);

//clear() - removes all entries from the bag

public void clear();

//contains() - test whether this bag contains a given entry

// @param anEntry - the entry to find

// @returns TRUE if the bag contains anEntry, or FALSE otherwise

public boolean contains(T anEntry);

//getFrequencyOf() - count the number of times a given entry appears in the bag

// @param anEntry - the entry to count

// @returns the number of time anEntry appears in the bag

public int getFrequencyOf(T anEntry);

//toArray() - retrieve all entries that are in the bag

// @returns a newly allocated array of all the entries in the bag

// NOTE: if bag is empty, it will return an empty array

public T[] toArray();

}

How much does a sleeping bag cost? Let's say you want a sleeping bag that should keep you warm in temperatures from 20°F to 45°F. A random sample of prices ($) for sleeping bags in this temperature range is given below. Assume that the population of x values has an approximately normal distribution.

(a) Use a calculator with mean and sample standard deviation keys to find the sample mean price x and sample standard deviation s. (Round your answers to two decimal places.)

(b) Using the given data as representative of the population of prices of all summer sleeping bags, find a 90% confidence interval for the mean price μ of all summer sleeping bags. (Round your answers to two decimal places.)

How much does a sleeping bag cost? Let's say you want a sleeping bag that should keep you warm in temperatures from 20°F to 45°F. A random sample of prices ($) for sleeping bags in this temperature range is given below. Assume that the population of x values has an approximately normal distribution. 65 75 35 65 70 60 30 23 100 110 105 95 105 60 110 120 95 90 60 70 (a) Use a calculator with mean and sample standard deviation keys to find the sample mean price x and sample standard deviation s. (Round your answers to two decimal places.) x = $ s = $ (b) Using the given data as representative of the population of prices of all summer sleeping bags, find a 90% confidence interval for the mean price μ of all summer sleeping bags. (Round your answers to two decimal places.) lower limit $ upper limit $

Suppose that budding economist Buck measures the inverse demand curve for toffee as P = $100 – Q^D , and the inverse supply curve as P = Q^s. Buck’s economist friend Penny likes to measure everything in cents. She measures the inverse demand for toffee as P = 10,000 – 100Q^D, and the inverse supply curve as P = 100Q^s.

a. Suppose market participants successfully lobby congress for a $45 price ceiling. What is demand at $45? What is supply at $45? Does the market clear at $45?\

b. What is consumer surplus at $45? What is producer surplus at $45? What is economic welfare at $45 dollars? Calculate a deadweight loss if there is one at $45.

c. Suppose producers successfully lobby congress for a $55 price floor. What is demand at $55? What is supply at $55? Does the market clear at $55?

d. What is consumer surplus at $55? What is producer surplus at $55? What is economic welfare at $55 dollars? Calculate a deadweight loss if there is one at $55.

Today is 1 July 2018. Matt is 30 years old today. Matt has a portfolio which consists of three Treasury bonds (henceforth referred to as bond A, bond B and bond C). There are 200 units of bond A, 300 units of bond B and 500 units of bond C. Bond A is a Treasury bond which matures on 1 January 2027. One unit of bond A has a coupon rate of j2 = 2.95% p.a. and a face value of $100. Matt purchased this Treasury bond on 15 March 2018. The purchase yield rate was j2 = 3.5% p.a. Find the purchase price of one unit of bond A. Using the formulae Price = v^(f/d) [ Co + CAn + (100V)^n ] where c = coupon amount, Co = next coupon amount, n = number of interest periods from next coupon date to maturity, d= number of days in current interest period, f = number of days from valuation date to next coupon date

How much does a sleeping bag cost? Let's say you want a sleeping bag that should keep you warm in temperatures from 20°F to 45°F. A random sample of prices ($) for sleeping bags in this temperature range is given below. Assume that the population of x values has an approximately normal distribution.

(a) Use a calculator with mean and sample standard deviation keys to find the sample mean price x and sample standard deviation s. (Round your answers to two decimal places.)

(b) Using the given data as representative of the population of prices of all summer sleeping bags, find a 90% confidence interval for the mean price μ of all summer sleeping bags. (Round your answers to two decimal places.)

Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows

Fixed expenses total $651,900 per year.

Required:

1. Assuming the sales mix given above, do the following:

a. Prepare a contribution format income statement showing both dollar and percent columns for each product and for the company as a whole.

b. Compute the company's break-even point in dollar sales. Also, compute its margin of safety in dollars and its margin of safety percentage.

1A.

1B.

EasyPoker Inc. needs to develop an estimate of its cost of capital. The firm’s marginal tax rate is 30%. The current price of EasyPoker’s 12 percent coupon, semiannual payment bonds with 15 years remaining to maturity is $1,153.72. The current price of the firm’s 10%, $100 par value quarterly dividend perpetual preferred stock is $110.00. EasyPoker’s common stock is currently selling at $50 per share. Its last dividend was 4.19, and dividends are expected to grow at a constant rate of 6 % forever. The firms’s beta is 1.35, the yield on T-bills is 7 percent, and the market risk premium is estimated to be 6%. EasyPoker’s capital structure is 40 percent debt, 10 percent preferred stock, and 50 percent common equity.

Please provide the following, showing all work:

2. Calculate the firm’s component cost of debt.

3. Calculate the firm’s cost of equity. Use all possible sources of information.

4. Calculate the firm’s WACC.