In MatLab, using linprog:

3.8.Paul has 2200 per year to invest over the next five years. At the beginning of each year he can invest in one–, two–, and three–year deposits at interest rates of 8%, 17% (total) and 27% (total), respectively. If Paul reinvests his money available each year, how much should he invest in each of the three deposits each year so that his total cash at the end of the five years is a maximum?

1. Sandra acquired a passive activity three years ago. Until last year, the activity was profitable and her at-risk amount was $120,000. Last year, the activity produced a loss of $100,000 and, in the current year, the loss is $50,000. Assuming Sandra has received no passive income in the current or previous year, her suspended loss (under the passive activity loss provisions) as of the end of the current year is:

a. $150,000

b. $120,000

c. $30,000

d. $0

e. None of these

Suppose 85% of the cars this plant produces are cherries. Both cherries and lemons can have Malfunctions in the first year of ownership. Suppose the probability that any car is both cherry and malfunction is .10. If a car is a lemon, the probability is .30 that it will malfunction in the first year.

A) What is the probability that any car is both a lemon and does not malfunction in the first year?

B) What is the probability that any car Malfunctions in the first year?

C) If a car malfunctions in the first year, what is the probability it is a lemon?

1. Find the present value of the following cash flow stream with an interest rate of 7%: Year 1 = $2,000 Year 2 = $4,000 Year 3 = $1,000 Year 4 = $6,000

2. Find the present value of the following ordinary annuity: $800 per year for 10 years at 6%

3. If you invest $5,000 in an investment which has an annual return of 10% but compounds every 6 months (instead of yearly), how much will it have after 6 years

economics question

"A company is considering entering into a new marketing campaign. If it engages in this marketing campaign, it must pay $9,000 immediately and $7,000 each at the end of year 1 and year 2. The company believes its annual revenues due to the marketing campaign will be $11,000 at the end of year 1, $9,000 at the end of year 2, and $6,000 at the end of year 3. What is the annual equivalent worth of this marketing campaign over the next three years? The interest rate is 4.2% compounded annually."

In a home theater system, the probability that the video components need repair within 1 year is 0.02, the probability that the electronic components need repair within 1 year is 0.005, and the probability that the audio components need repair within 1 year is 0.004. Assuming that the events are independent, find the following probabilities. (Round your answers to four decimal places.)

(a) At least one of these components will need repair within 1 year


(b) Exactly one of these component will need repair within 1 year

You are choosing between two projects. The cash flows for the projects are given in the following table​ ($ million):

a. What are the IRRs of the two​ projects?

b. If your discount rate is

5.5 %

what are the

NPVs

of the two​ projects?

c. Why do IRR and NPV rank the two projects​ differently?

1. Consider the following two mutually exclusive projects X and Y:

1. 1. What is the crossover rate for these two projects?
2. 2. Sketch the NPV profiles for X and Y (point out the IRR of each project and the crossover rate in the NPV profiles).
   3. The required return is 10%. Which project should be chosen?

Jane is required to take her first required minimum distribution (RMD) this year. Which of the follow are true regarding that distribution?

1. The distribution can be in cash or in kind
2. The first distribution can be delayed until April 1st of the following year
3. The IRA is valued as of the last day of the previous year in making distribution calculations
4. If the distribution is deferred until the following year, she will have to take two distributions next year

1)

1, and 2

1, 2, 3, and 4

2. Suppose an investor is interested in purchasing the following income-producing property for $1,200,000. The investor has estimated the expected cash flows over the next four years to be as follows: Year 1 = $100,000, Year 2 = $110,000, Year 3 = $120,000, Year 4 = $120,000. Assuming the investor’s required rate of return is 11% and the estimated proceeds from selling the property at the end of year four is $1,250,000, what is the NPV of the project? please show work on how it's done