Quantitative Finance

1: Statement of Cash Flows Group Assignment DUE: Friday, October 14th by 5:00 pm. Finance 505- Fall 2022 Please work in your assigned teams to complete the following project. You need only submit one project per team but please make sure all group member names are listed. Please submit by uploading to Canvas. Imagine you are an analyst and have been provided the following balance sheet information for the prior two years.

1. Suppose you are given the following features of Bonds A, B, and C. (Note that all three bonds have a maturity of 1 year, which complicates the equations but not the linear algebra in Excel.)

2. Suppose you are given the following features of Bonds D, E, and F. (Note that all three bonds have a maturity of 1 year, which complicates the equations but not the inear algebra in Excel.)

5 A car dealer offers a 5-year loan that costs $17.416522 per month for each $1,000 borrowed. What is the monthly payment (in dollars) for a car that i (Round your answer to the nearest cent.) financed for $35,300?

Dagmar has a 4-year car loan at an annual interest rate of 6.5%. She has made 28 payments of $978.77. If Dagmar decides to pay off her loan, what is her payoff amount (in dollars)? (Round your answer to the nearest cent.)

A cloud storage engineer purchased a new car for $31,990. Complete the table below to determine the cost of owning the car for the first year of ownership. Assume the car has an average fuel efficiency of 35 miles per gallon and a 4-year loan at an annual interest rate of 3.75% on the purchase price less the down payment. (Round your answers to the nearest cent.)

Marisa leases a car that has a purchase price of $61,500 with an MSRP of $64,950 and decides to lease the car for 36 months. Find the monthly lease payment (in dollars) if the annual interest rate is 7.5%, the trade-in of her car was $25,000, she makes a $3,000 down payment, the residual value is 45% of the MSRP. Include a sales tax of 6.25%. (Round your answer to the nearest cent.) EB

You are considering two cars that you plan on keeping for 5 years. One has an EPA combined city and highway rating of 31 mpg. The second has an EPA rating of 33 mpg. Suppose gasoline costs $3.41 per gallon and you drive 10,000 miles each year. (Round your answers to the nearest cent.)

Industry Portfolios.xlsx contains monthly nominal (net) returns for ten industry portfolios, expressed in percent. These returns cover the ten-year period from Jan 2004 through Dec 2013. Use these returns to estimate the vector of mean returns and the covariance matrix of returns for the ten industry portfolios. → Create a table showing the mean return and standard deviation of return for the ten industry portfolios.

→ Plot the minimum-variance frontier (without the riskless asset) generated by the ten industry portfolios, with expected (monthly) return on the vertical axis and standard deviation of (monthly) return on the horizontal axis. This plot should cover the range from 0% to 2% on the vertical axis, in increments of 0.1% (or less).

→ Plot the efficient frontier (with the riskless asset) on the same plot as the minimum-variance frontier generated by the ten industry portfolios.

→ Calculate the Sharpe ratio for the tangency portfolio, and also the tangency portfolio weights for the ten industry portfolios.

FINA 408 Homework #2 - DUE SUNDAY, NOVEMBER 13th @ Midnight (we will cover this in class on Monday so late work is not accepted). ( MCQ )

- You are allowed to use a calculator, Excel, Word, and pen & paper - Answer these questions without consulting anyone

QUESTION 1 A new production system for a factory is to be purchased and installed for $120,887. This system will save approximately 300,000 kWh of electric power each year for a 6-year period. Assume the cost of electricity is $0.10 per kWh, and factory MARR is 15% per year, and the salvage value of the system will be $9,018 at year 6. Using the AW method to analyzes if this investment is economically justified A- calculate the AW of the above investment and insert the result below.

QUESTION 2 B- Based on the AW value you got in the previous question, is this investment economically justified or not? type you explanation below For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).

QUESTION 3 For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10%

QUESTION 4 For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10%

QUESTION 5 For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10%.

QUESTION 6 D- Based on the AW value you got in the previous 3 questions, which machine we should select? type you explanation below For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).

According to Descarte's rule of signs, the possible number of rate of return values for the net cash flow

KaYa Ltd manufactures furniture. The information below relates to a 1970's retro bookshelf that they make for boutique buyers. They have a medium sized factory, and the information below only relates to the production run making the bookcases. The production manager Jess,decided to run three separate production runs of bookcases during July-December 2021.There are two manufacturing overhead allocation rates that are assigned to production. One is using the cost-driver of labour-hours and the other uses kilowatts of electricity used in a production run. Manufacturing overhead costs in January-June 2021 were budgeted to be $102,250. The actual manufacturing overhead was $105,500. Allocated during that time was $108,250 of manufacturing overhead. For July - December 2021 it was estimated that manufacturing overhead per production run would total $7,360, there would be 50 labour hours per production run and that 15 machine hours would be used in each production run. Jess has budgeted that each time a machine runs for an hour it uses 100 kilowatts of electricity. The cost pool of total overhead is split between the two cost drivers equally. The staff that work on the production run are paid $20 per hour,and each book case uses $35 of wood. a) In January to June 2021, how much overhead was over or under-applied? What may have caused this? b) State at least three overhead costs that could be included in each overhead application rate cost pool. Explain if this would be a fixed or a variable cost and why it would be included in the electricity or labour cost pool. c) Calculate the predetermined overhead application rates for a single production run that would be used for absorption costing purposes during June 30-December 312021. Round your allocation rate to 2 decimal points. d) In production run 1,75 bookcases were made. In this production run 48 labour hours were used, and the machines ran for a total of 13 hours. What is the cost per bookcase? Show all workings. e) At the end of December, 12 bookcases from production run 1 were in ending inventory. There had been no opening inventory. Calculate the cost of the finished goods (on the balance sheet) and the Cost of Goods Sold (on the income Statement)for production run 1.(A morka) f) What would you recommend that we sell each bookcase for? Show your calculations.

Highland Co. is a manufacturing firm. The company produces two products, A and B. The sales volume for A is at least 80% of the total sales of both A and B. However, the company cannot sell more than 100 units of A per day. Both products use one raw material, of which the maximum daily availability is 240 lb. The usage rates of the raw material are 2 Ib per unit of A, and 4 lb per unit of B. The profit units for A and B are £20 and £50 respectively. a) Formulate a linear programming model for this problem. b) Use the graphical method to find the optimal solution to the following Linear Program. Explain the effect(s) of changing constraint x_1+x_2<30 to x_1+x_2<31 in the above linear program (i.e., part b).[ The manager of the Highland Co. (the above company) wishes to forecast the sales volume of product A in the next period. The company has accumulated the following sales data for the past 10 periods. e) Compute the last value forecast, a four period moving average and an exponential smoothing forecast (a = 0.3) for the above sales data. In each case, estimate the sales volume of product A in period 11. f)Compute the Mean Absolute Errors (MAE) for the results in part (e), and comment on the accuracy of the sales forecast pertaining to each of the three techniques. Explain if selecting a larger value of a would have any effect on the performance of the exponential smoothing method in this case and why.[10% of marks] g) Discuss how the Business Analytics methods could be useful to decision makers inAmazon.