create a forecast to determine the number of houses the firm will sell over the 2020 calendar year. She pulled the following quarterly sales figures from the last 4 years to use as historical data. 2017 Quarter 1 2 3 4 2016 28 26 37 31 23 25 2018 2019 25 30 31 31 38 36 34 38 32 29 Based on the information provided, answer the following questions. Round calculations to at least 3 decimal places. a) What are the seasonal factors for each of the four quarters? (5) b) What is the annual linear regression forecast for 2020? (5) c) Based on the seasonal factors, what are the quarterly forecasts for 2020? (5) d) What would the 2020 linear regression forecasts for quarters 1 through 4 be if the linear regression was based on the quarterly forecasts instead of the annual forecasts? (5) Guilford Municipal Development Group intends to develop an automated system to help with their project selection process. There are three system alternatives under consideration: Alpha, Beta, and Charlie. The costs associated with each system are shown in the table below. Note: Assume all cash flows occur at the end of the year(s) specified. Cost Component Development Beta $10,000 immediately Charlie None Programming Alpha $100,000 immediately $150,000 Year 1 $45,000 immediately $35,000 Year 1 $50,000 Years 1-10 $30,000 Years 1-10 None $45,000 immediately $30,000 Year 1 $80,000 Years 1-10 $40,000 Years 1-10 Operations Support $150,000 Years 1-10 None a) If each system is expected to have a 10-year life, calculate the net present value for each system if the cost of capital is 8%. (15) b) Specify which system should be selected and why. (5) create a forecast to determine the number of houses the firm will sell over the 2020 calendar year. She pulled the following quarterly sales figures from the last 4 years to use as historical data. 2017 Quarter 1 2 3 4 2016 28 26 37 31 23 25 2018 2019 25 30 31 31 38 36 34 38 32 29 Based on the information provided, answer the following questions. Round calculations to at least 3 decimal places. a) What are the seasonal factors for each of the four quarters? (5) b) What is the annual linear regression forecast for 2020? (5) c) Based on the seasonal factors, what are the quarterly forecasts for 2020? (5) d) What would the 2020 linear regression forecasts for quarters 1 through 4 be if the linear regression was based on the quarterly forecasts instead of the annual forecasts? (5) Guilford Municipal Development Group intends to develop an automated system to help with their project selection process. There are three system alternatives under consideration: Alpha, Beta, and Charlie. The costs associated with each system are shown in the table below. Note: Assume all cash flows occur at the end of the year(s) specified. Cost Component Development Beta $10,000 immediately Charlie None Programming Alpha $100,000 immediately $150,000 Year 1 $45,000 immediately $35,000 Year 1 $50,000 Years 1-10 $30,000 Years 1-10 None $45,000 immediately $30,000 Year 1 $80,000 Years 1-10 $40,000 Years 1-10 Operations Support $150,000 Years 1-10 None a) If each system is expected to have a 10-year life, calculate the net present value for each system if the cost of capital is 8%. (15) b) Specify which system should be selected and why