Please formulate and solve each of the following problems. For each problem, you should include the final SOLVER printout (either your final spreadsheet or an answer report), as well as (1) clear and precise definitions for all decision variable; (2) your objective function indicating whether it is to be maximized and minimized; (3) all constraints, including non-negativity and integrality (if necessary); and (4) what the optimal decision is (in words) and what outcome will be produced.

1. A manufacturer of stereos has plants in Atlanta, New Haven and Dallas, and distributions centers in San Francisco, Boston, Washington, D.C., and Cleveland. The tables show weekly production capacities, demand requirements, and unit transportation costs (in dollars).

                                                                                Cleveland                                       65

The goal is to minimize total transportation costs.

3. A company has five jobs, each of which must be assigned to a single machine. The table shows the dollar costs for each possible job-machine assignment:

JOB                                                    MACHINE

                                    A                     B                     C                     D                     E

1                                  138                  127                  118                  121                  143

2                                  157                  138                  129                  132                  160

3                                  143                  129                  131                  130                  172

4                                  111                  119                  123                  107                  120

5                                  102                  120                  100                  119                  100     

Find the set of assignments with the lowest possible total cost.

A firm is evaluating two projects for this year’s capital budget. Its WACC is 14%. Project A costs $6,000 and its expected cash inflows would be $2,000 per year for 5 years. Project B costs $18,000 and its expected cash inflows would be $5,600 per year for 5 years. Calculate NPV and IRR for each project.

Refer to problem 7. Calculate the MIRR and payback for each project.

Refer to Problem 7. Calculate the discounted payback for each project.

Refer to Problem 7. If the projects were mutually exclusive, which one would you recommend? If the projects were independent, which one(s) would you recommend? Explain.

A firm is evaluating two projects for this year’s capital budget. Its WACC is 14%. Project A costs $6,000 and its expected cash inflows would be $2,000 per year for 5 years. Project B costs $18,000 and its expected cash inflows would be $5,600 per year for 5 years. Calculate NPV and IRR for each project.

Refer to problem 7. Calculate the MIRR and payback for each project.

Refer to Problem 7. Calculate the discounted payback for each project.

Refer to Problem 7. If the projects were mutually exclusive, which one would you recommend? If the projects were independent, which one(s) would you recommend? Explain.

At the end of the year, Randy’s Parts Co. had the following items in inventory:

a. Determine the amount of ending inventory using the lower-of-cost-or-market rule applied to each individual inventory item.


b. Provide the adjustment necessary to write down the inventory based on Requirement a. Assume that Randy’s Parts Co. uses the perpetual inventory system.

c. Determine the amount of ending inventory, assuming that the lower-of-cost-or-market rule is applied to the total inventory in aggregate.

d. Provide the adjustment necessary to write down the inventory based on Requirement c. Assume that Randy’s Parts Co. uses the perpetual inventory system.

Q1: A portfolio has three stocks long dash— 240 shares of Yahoo? (YHOO), 130 shares of General Motors? (GM), and 70 shares of Standard and? Poor's Index Fund? (SPY). If the price of YHOO is? $30, the price of GM is? $30, and the price of SPY is? $130, calculate the portfolio weight of YHOO and GM

Q2: A stock market comprises 2500 shares of stock A and 2500 shares of stock B. The share prices for stocks A and B are $20 and $5?, respectively. What proportion of the market portfolio is comprised of each? stock?

Q3: UPS, a delivery services? company, has a beta of 1.6?, and? Wal-Mart has a beta of 0.6. The? risk-free rate of interest is 6% and the market risk premium is 88?%. What is the expected return on a portfolio with? 40% of its money in UPS and the balance in?Wal-Mart?

At the end of the year, Randy’s Parts Co. had the following items in inventory:

Required
a. Determine the amount of ending inventory using the lower-of-cost-or-market rule applied to each individual inventory item.
  

b. Provide the general journal entry necessary to write down the inventory based on Requirement a. Assume that Randy’s Parts Co. uses the perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
  

c. Determine the amount of ending inventory, assuming that the lower-of-cost-or-market rule is applied to the total inventory in aggregate.
  

Newlands Brewery is evaluating a new product line for the production of two new cider brands for the young affluent target market. The brewery is currently operating at its optimal capacity and it will have to invest in an expansion for new machinery and production space. The expected cash flows for the two cider brands are:
Project Cider A, Cashflows are as follows , Year 0=(25 000), Year 1=12 900, Year 2=10 900, Year 3 =8 300 and year 4=7 240.

Project Cider B, Cashflows are as follows , Year 0=(13 500), Year 1=7 230, Year 2=8 200, Year 3 =8 600 and year 4=5 400

Also the expected net income figures for the new product line are as follows

Project Cider A net incomes Year 1=6 728, Year 2=4 800, Year 3 =2 009 and Year 4= 7 420

Project Cider B net incomes Year 1=3 855, Year 2=4 725, Year 3=5 255 and Year 4 =1 864

Consider the following information:
• The average book value for Cider A project is R12,500,000
• The average book value for Cider B project is R6,800,000
• Management requires 15 percent for the project to go ahead based on accounting rate of return perspective
• The discount rate for a project of similar risk level is 10 percent
• Management requires a minimum payback of 1.75 years for the type of risk associated with this project

Required:
Taking into consideration that the two projects are independent and no scaling issues, what should Newlands Brewery do? Your answer should be supported by the analysis of the following calculations:
• Payback method
• Discounted payback method
• Accounting rate of return (using averages)
• Net present value
• Internal rate of return
• Profitability index
Now consider the presence of scaling issue, which project should Newland Brewery consider?

A manufacturer produces both a deluxe and a standard model of automatic sander designed for home use. Selling prices obtained from a sample of retail outlets follow.

What is the 95% confidence interval for the difference between the mean prices of the two models (to 2 decimals)?

(X , X)

A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return If This Demand Occurs Weak 0.2 (22%) Below average 0.1 (7) Average 0.5 15 Above average 0.1 40 Strong 0.1 68 Assume the risk-free rate is 3%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return: Standard deviation: Coefficient of variation: Sharpe ratio:

Consider the following two​ projects: Project Year 0 ​C/F Year 1 ​C/F Year 2 ​C/F Year 3 ​C/F Year 4 ​C/F Year 5 ​C/F Year 6 ​C/F Year 7 ​C/F Discount Rate Alpha minus79 20 25 30 35 40 ​N/A ​N/A 16​% Beta minus80 25 25 25 25 25 25 25 17​% The net present value​ (NPV) for project beta is closest​ to: