Assume that I can borrow money at a rate of 10% per year, but that I only earn 2% per year on money I loan. A friend has recently offered me an investment opportunity; make a $5,000 investment today and receive a guaranteed $5,400 in one year. I currently have $10,000 in the bank, but I plan on consuming $9,000 – meaning that I only have $1,000 that I could invest. Can/should make the investment? How much consumption would I need to be willing to forego to make the investment? (Another way to think about this is what is the maximum amount that I would be willing to borrow to take the investment?)

You are the recipient of a gift that will pay you $25,000 one year from now and every year thereafter for the following 24 years. The payments will increase in value by 2.5 percent each year. If the appropriate discount rate is 8.5 percent, what is the present value of this gift? STEPS FOR BAII PLUS CALCULATOR PLEASE!

(1)        The standard costs of wooden ducks on wheels, for the CURRENT year, for 5 mm board and for cutting are as follows:-

            5 mm board: 0.2 sq. metre at £4.50 per sq. metre.

            Cutters: 1.5 minutes at £7.20 per hour.

In the most recent period, 120 wooden ducks on wheels were produced.

25 sq. metres of 5 mm board were requisitioned from stores at a total cost of £110.

            2.75 hours were recorded for cutters at a total cost of £22.

            Required

(a)        Calculate the material price variance and material usage variance for 5 mm board

(ii)        Calculate the wage rate variance and labour efficiency variance for cutters

           

Suggest possible reasons for the variances calculated.

(2)        Given standard cost per unit:

            Direct materials (4 kg. @ 75p per kg)

            Direct labour (2 hrs @ £1.60 per hr)

            Actual details are:

		£
Output produced (units)	38,000
Direct material purchased	180,000 kg	126,000
issued to production	154,000 kg
Direct labour	78,000 hrs	136,500

            Calculate:         Material and labour variances.

An owner of the Atrium Tower is currently negotiating a 5 year lease with ACME Corp. for 20,000 rentable SF. ACME would like a base rent of $25/SF with step-ups of $1/year beginning one year from now. a) What is the present value of cash flows to Atrium (assume A 10% discount rate) b) The owner of ATRIUM believes that the Base rent of $25/SF in (a) is too low and wants to raise that amount to $29 with the same step-ups. If so, Atrium would provide ACME with a $50,000 moving allowance and $150,000 in tenant improvements. What is the PV of this alternative and the effective rent. c) ACME informs ATRIUM it will pay $23/SF but must buyout one year left on its existing lease ($15/SF on 20,000/SF); no moving allowance or tenant Improvements. What is the PV of this alternative and the effective rent.

Bonds often pay a coupon twice a year. For the valuation of bonds that make semiannual payments, the number of periods doubles, whereas the amount of cash flow decreases by half. Using the values of cash flows and number of periods, the valuation model is adjusted accordingly.

1) Assume that a $1,000,000 par value, semiannual coupon US Treasury note with four years to maturity has a coupon rate of 4%. The yield to maturity (YTM) of the bond is 7.70%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note:

a) $874,669.10

b) $551,041.53

c) $743,468.74

d) $1,049,602.92

Based on your calculations and understanding of semiannual coupon bonds, complete the following statement:

2) When valuing a semiannual coupon bond, the time period variable(N) used to calculate the price of a bond reflects the number of (4-month, 8-month, 6-month, 12-month) periods remaining in the bond’s life.

ASSIGNMENT:

• Research a current or previous year article on any of the topics listed below or topics related to week the materials. Narrow down your topics if possible.
• Then, in a 2-3 page paper, write an applied summary paper. Applied means what you write from the viewpoint of a project manager in a work or project setting.

Suggested topics for the assignment include:

• Leadership
• Cybersecurity Project Management
• Software Development Management
• Database Project Management
• Cybersecurity
• IT Security
• IT Project Management
• Information Security Management
• Business Analytics

Write a program, called NationalTax, that will simulate calculating a citizen's income tax for the year.

A country uses lettered ID's to identify its citizens. Valid ID's will be either 8 or 9 characters long. All characters entered will be alphabetic characters only (a-z or A-Z).

• Display a welcome message.
• Prompt the user for their ID and read it in.
• Next, determine if the ID is valid based on its length.
  • If it is not valid, simply state that the ID is invalid and let the program end naturally (you may NOT use System.exit).
  • However, if it is valid, then do the following:
    • Prompt the user for the tax year (entered as a four-digit integer). No validity check needs to happen here.
    • Prompt the user for their annual income (this includes dollars and cents) and read it in. Since no annual income can be less than zero, if the user enters a negative amount, simply convert it to its positive amount. You may not use if/else statements here. Use the appropriate Math library method.
    • Convert the ID to all CAPS.
    • Display the ID.
    • Display the annual income as dollars and cents.
    • Set the tax amount to be log₁₀ of their annual income multiplied by 100. Display this as their initial tax amount.
    • Then if the first character of the ID is in the range:
      • A - G, then the person works for the government. Reduce their tax by 10%. Display that they are a government employee, that they receive a 10% tax reduction, and display the new tax amount.
      • H - P, then the person works in the public sector. There is no tax reduction. Display they they are a public sector employee and that they receive no tax reduction.
      • Q - U, then the person is unemployed. Display that they are unemployed and that they receive no tax reduction.
      • Otherwise the person is retired. Reduce their tax by 25%. Display that they are retired, that they receive a 25% tax reduction, and display the new tax amount.
    • Then if the last character of the ID is greater than the first character:
      • the person is 21 years old or older. They pay an additional $100 in taxes. Add this to their current tax amount. Display that they are 21 years of age or older, that there is an additional $100 tax, and display the new tax amount.
      • Otherwise the person is less than 21 years old. There is no additional tax. Display that the are under 21 years of age and do not pay the additional tax.
    • Then if the ASCII value of the fifth letter (remember indexing starts at 0) of the ID (as a capital letter) is divisible by 7
      • that person is a millionaire. Their tax is the larger of the current tax amount and $15,000. Display that they are a millionaire, that their tax is the larger of their current tax amount (display the value) and $15,000, and display their new tax amount.
      • Otherwise they are not. Display nothing.
    • Then if the ID contains the string "MED" (remember case does not matter in the ID):
      • then they are a medical professional. Their tax is reduced by $100. Display that they are a medical profession, they their tax is reduced by 100, and display the new tax amount.  
      • Otherwise they are not. Display nothing.
    • Then if the final tax amount is negative, change it to 0.
    • Finally, in one printf statement, display a message that tells the user the ID, the tax year, their annual income, and their final tax amount owed.

(Extra Credit) What is the value of the following cash flows in year 6? What is the value today? Assume interest rates today are 6.5%, then rates will be 6.25% for the next 4 years, 3.75% for the next 3 years, 5.3% for the next 4 years, and 3.75% thereafter.

Year Cash Flow

6 $5,675

8 $9,725

10 $6,750

17 $11,750

Write the Flowchart for the following programming problem based on the pseudocode below.

Last year, a local college implemented rooftop gardens as a way to promote energy efficiency and save money. Write a program that will allow the user to enter the energy bills from January to December for the year prior to going green. Next, allow the user to enter the energy bills from January to December of the past year after going green. The program should calculate the energy difference from the two years and display the two years’ worth of data, along with the savings.

Hints: Create three arrays of size 12 each. The first array will store the first year of energy costs, the second array will store the second year after going green, and the third array will store the difference. Also, create a string array that stores the month names. These variables might be defined as follows:

notGreenCost = [0] * 12

goneGreenCost = [0] * 12

savings = [0] * 12

months = ['January', 'February', 'March', 'April', 'May', 'June', 'July', 'August', 'September', 'October', 'November', 'December']

   

Your sample output might look as follows:

Enter NOT GREEN energy costs for January

Enter now -->789

Enter NOT GREEN energy costs for February

Enter now -->790

Enter NOT GREEN energy costs for March

Enter now -->890

Enter NOT GREEN energy costs for April

Enter now -->773

Enter NOT GREEN energy costs for May

Enter now -->723

Enter NOT GREEN energy costs for June

Enter now -->759

Enter NOT GREEN energy costs for July

Enter now -->690

Enter NOT GREEN energy costs for August

Enter now -->681

Enter NOT GREEN energy costs for September

Enter now -->782

Enter NOT GREEN energy costs for October

Enter now -->791

Enter NOT GREEN energy costs for November

Enter now -->898

Enter NOT GREEN energy costs for December

Enter now -->923

-------------------------------------------------

Enter GONE GREEN energy costs for January

Enter now -->546

Enter GONE GREEN energy costs for February

Enter now -->536

Enter GONE GREEN energy costs for March

Enter now -->519

Enter GONE GREEN energy costs for April

Enter now -->493

Enter GONE GREEN energy costs for May

Enter now -->472

Enter GONE GREEN energy costs for June

Enter now -->432

Enter GONE GREEN energy costs for July

Enter now -->347

Enter GONE GREEN energy costs for August

Enter now -->318

Enter GONE GREEN energy costs for September

Enter now -->453

Enter GONE GREEN energy costs for October

Enter now -->489

Enter GONE GREEN energy costs for November

Enter now -->439

Enter GONE GREEN energy costs for December

Enter now -->516

-------------------------------------------------

                        SAVINGS                     

_____________________________________________________

SAVINGS     NOT GREEN     GONE GREEN         MONTH

_____________________________________________________

$ 243          $ 789          $ 546           January

$ 254          $ 790          $ 536           February

$ 371          $ 890          $ 519           March

$ 280          $ 773          $ 493           April

$ 251          $ 723          $ 472           May

$ 327          $ 759          $ 432           June

$ 343          $ 690          $ 347           July

$ 363          $ 681          $ 318           August

$ 329          $ 782          $ 453           September

$ 302         $ 791          $ 489           October

$ 459          $ 898          $ 439           November

$ 407          $ 923          $ 516           December

Do you want to end program? (Enter no or yes): yes

The Pseudocode

Module main()

            //Declare local variables

            Declare endProgram = “no”

            While endProgram == “no”

                        Declare Real notGreenCost[12]

                        Declare Real goneGreenCost[12]

                        Declare Real savings[12]

Declare String months[12] = “January”, “February”, “March”, “April”, “May”, “June”, “July”, “August”, “September”, “October”, “November”, “December”

                          //function calls

                        getNotGreen(notGreenCost, months)

                        getGoneGreen(goneGreenCost, months)

                        energySaved(notGreenCost, goneGreenCosts, savings)

                        displayInfo(notGreenCost, goneGreenCosts, savings, months)

           

                        Display “Do you want to end the program? Yes or no”

                        Input endProgram

            End While

End Module

Module getNotGreen(Real notGreenCost[], String months[])

            Set counter = 0

            While counter < 12

                        Display “Enter NOT GREEN energy costs for”, months[counter]

                        Input notGreenCosts[counter]

                        Set counter = counter + 1

            End While       

End Module

Module getGoneGreen(Real goneGreenCost[], String months[])

            Set counter = 0

            While counter < 12

                        Display “Enter GONE GREEN energy costs for”, months[counter]

                        Input goneGreenCosts[counter]

                        Set counter = counter + 1

            End While       

End Module

Module energySaved(Real notGreenCost[], Real goneGreenCost[], Real savings[])

            Set counter = 0

            While counter < 12

                        Set savings[counter] = notGreenCost[counter] – goneGreenCost[counter]

                        Set counter = counter + 1

            End While

End Module

Module displayInfo(Real notGreenCost[], Real goneGreenCost[], Real savings[], String months[])

            Set counter = 0

            While counter < 12

                        Display “Information for”, months[counter]

                        Display “Savings $”, savings[counter]

                        Display “Not Green Costs $”, notGreenCost[counter]

                        Display “Gone Green Costs $”, goneGreenCost[counter]

            End While

End Module

An office building is expected to create operating cash flows of $26,500 a year for three years, based on tenants' rental income. The purchase of the fixed assets for this building will cost $55,000. These assets will have no value at the end of the project. An additional $5,000 of net working capital will be required throughout the life of the project. Calculate the net present value of this project if the required rate of return is 15 percent?

Multiple Choice

• $8,793.05

• $3,793.05

• $1,566.67

• $505.47

• $-1,206.95