600 points
Do all of these problems in a single Excel Workbook. Solve each problem on a separate Worksheet. Your Excel File must be setup like you did in Formative01 with appropriate-Worksheet tab names:
(200) When done, upload your file, named Summative01.xlsx, to the D2L Assignment Folder 'Summative01'.
NPV-Chapter 7, Problem 6
Consider the following cash flows:
Date
Cash Flow
12/15/01
($1,000.00)
1/11/02
$300.00
4/07/03
$600.00
7/15/04
$925.00
1.(50) If today is November 1, 2001, and r = .15, what is the NPV of these cash flows?
NPV:
IRR&NPV-Chapter 8
(50) 2. Consider the following two projects. Assume the company's cost of capital is 15 percent. Find the IRR and NPV of each project. Which project adds value to the company? If the company can choose only a single project, which project should it choose?
Project adding value:
Year 1
Year 2
Year 3
Year 4
Project 1
–$40
$130
$19
$26
Project 2
–$80
$36
Finance-Chapter 9, Problem 7
3. You are borrowing $200,000 on a 30-year mortgage with an annual interest rate of 10 percent. Assuming end-of-month payments, determine the monthly payment, (25) interest payment each month, and (25) amount paid toward principal each month.
(50) Write the monthly payment below:
Monthly Payment:
Circular References-Chapter 10 Problem 3
4. (100) An airplane is flying the following route: Houston- Los Angeles- Seattle- Minneapolis- Houston. On each route the plane's miles-per-gallon is 40 - .02*(average fuel on route). Here, average fuel on route is equal to .5*(initial fuel on route + final fuel on route). We begin in Houston with 1,000 gallons of fuel. The distance flown on each route is as follows. How many gallons of fuel will remain when I return to Houston?
Route
Miles
Houston-LA
1200
LA-Seattle
1100
Seattle-Minneapolis
1500
Minneapolis-Houston
1400
Gallons remaining in Houston:
If Statements-Chapter 11 Problem 1
Suppose the price of a product will change at dates in the future as follows:
Price
On or before February 15, 2004
$8.00
Between February 16, 2004, and April 10, 2005
$9.00
Between April 11, 2005, and January 15, 2006
$10.00
After January 15, 2006
$12.00
(50) 5. Write a formula (using named ranges, NOT cell references) that will compute the price of the product based on the date the product is sold.
Formula:
Time-Chapter 12, Problem 2.c.
6. (50) The file Marathon.xlsx gives marathon race times for four runners. Compute the average times of the runners. c. How many total seconds did each runner take? John: Jill: Jack: Erica: