"For the problems 1-5, begin by assuming you have: Unit Sales: 8275 Sales Growth Rate, years 1-4: 0.07 inflation rate: 0.02 Real Cost of Capital: 0.11 Tax Rate: 0.22 Sales Revenue / Unit: 10.79 Variable Cost / Unit: 7.23 Cash Fixed Costs: 8676 Investment: 50271. Problem 1: What are the projected unit sales in year 7 if sales are expected to increase by 12% in year 5, and then decrease by 21% in years 6 and 7?

expecled to increase by 12% in year 5 , and then decrease by 21% in years 6 and 7?" a. 4369.31 b. 8275 c. 8969.42 d. 7085.84 QUESTION 2 "Problem 2: Assuming eales revenue per unt, variable cost por unit, and cash fixed coats allincrease by tha rate of inflatian, what is yout profected gross margin in year 7?7 a. 29459 b. 17597.34 c. 57694.03 d. 28408.12 Problem 3: What is tho nat present valua of this project? a. 42990.8 b. 42130.98 c. 5523.6 d. 43850.62 QUESTION 4 Froblem d: Afer you conduct your in ial analysis, you discover that the firm has the option so abanden the gropect and sen its specialized equlipment at the end of yoae B for $4189.25. What is the new NPV of the project? . 44747.4 b. 44747 c. 4213099 d. 42130,98 QUESTION 5 'Problem 5: Your boss is apprehensive about your worksheet and your estimation of this project's NPY. THIS LOOKS LIKE A JOB FOR SOLVER, you blurt but, only to find out that your boss bought a bostleg version of Excel that does net include the add-in. By changing the unit sales of your exsting model as it stands from the priot problem (i.e., assuming the option to abandon from in4 is exercisod, basically DO NOT REVERT YOUR ANSWER BACK BEFORE COMPLETING THE PROBLEM), find the number of unit sales needed in year 1 to give you an NPV of zero." 3,2819,26 the number of unit snies needed in yoar 1 to give you an NPV of zero. " 7. 281926 b. 37609875 c 825775 a. 512593 QUESTION 6 'For problems 6-10: On the blank tab labeled Part 2, following best practicen for model creation (foematting, separating the variaties from the main table, eve.) create loan amortizasion tables for loans with the following characteristics. Loan Amount: 24000 Annuai Interest Pate: 0.08 Number of Paymeets Per Year:2 Loan Petiod in Years:12 Problem 6: For an equal payment term loan (such as a morigoge), What would be the interest-only portion of the third payment (Rounded to nearest dellar)? d. 452 b. 678 c. 720 d. QUESTION 7 'Problem 7: For an equal payment term loan (such as a morigage). what is the loan balance at the end of the third payment (rounded to nearest dollar)?" a. 21000 . 21000 b. 23303 c. 21845 d. 22545 QUESTION 8 'Problem 8: What is the EAIR for the equal payment ioun? (2 decimal places, eg 0.0%)4 a. 0.0609 b. 0.0592 c. 0.0644 d. 0.06 QUESTION 9 "Problem 9: For an equal amortization loan (NOT like a morigagel), what is the total payment in period 3 ?" a. 1660 b. 1000 c. 1720 d. 1417 - question Completion \$ratus: c. Tre0 d. 1417 QUESTION 10 "Probiem 10-For an equal amorization loan, what is the amount of interest paid in the third paryment?" a. 600 b. 660 c. 720 d. 452 QUESTION 11 "For Problems 11-15: You have the option to lease or purchase an asset which will have a 3 year life. You can purchase the asset for $17500, of you can lease three years with the first payment of $6500 due today (the cash flow stream wil be three equal payments at the beginning of periods 1 , 2 , and 3 ). You can borto the bank at 18%. On the tab labeled Part 3, Create a spreadsheet model to compare your lease vs. purchase decilion. The model should follow best practices your variables from the model or tables you're building), and it should mep out the cash flows for each period under each scenario. Problem 11: What is the NP. costs of the tease? (Round to the nearest dollar.)" a. 16677 b. 16594 c. 17060.571 d. 18542 OUESTION 12 ok Save and Submit to save and submit. Click Save All Answers to save all answers: 'Problem 12: Use an ifO function to determine your lease vs purchase decinion based on the NPV of the lease-minus-purchase decision. Select its output here (note, you must also have a property functioning IF function producing this output in your submitted spreadeheet to recolve full credit). " a. What even is an IF function man b. Purchase c. Lease d.OdBeans: QUESTION 13 'Problem 13: Create an additional column that contains the "Lease Minus Purchase" cash flows, and calculate the IRR of the differential cash fows, (Round to the nearest 2 decimal places, ex: 0,x%)n a. 0.061 b. =0.14875 c. 0.18 d. 0.119 QUESTION 14 Problem 14: You discover that the asset will have a salvage value at the end of Year 3 of $1000. What is the new NPV of the costs of the purchase? a. 16677 b. 17476 c. 16653 d. 16677 ck Save and Submit to save and submit. Click Save All Answers to save all answers. Problem 14: You discover that the asset will have a salvage value at the end of Year 3 of $1000. What is the new NPV of the costs of the purchese? a. 16677 b. 17476 c. 16653 d. 10677 QUESTION 15 'Problem 15: Determine the purchase price at which you would be indifferent between the lease or the purchase decision (given the new saivage value). Note that e you know, in your heart, that Solver would be a great way to appronch this problem, but alas, you are constrained. Using your completed model, subsitute the folle numbers in to approximate what Solver is doing. Round to the nearest dollar, " a. 17524 b. 23177 c. 17675 d. 17476 expecled to increase by 12% in year 5 , and then decrease by 21% in years 6 and 7?" a. 4369.31 b. 8275 c. 8969.42 d. 7085.84 QUESTION 2 "Problem 2: Assuming eales revenue per unt, variable cost por unit, and cash fixed coats allincrease by tha rate of inflatian, what is yout profected gross margin in year 7?7 a. 29459 b. 17597.34 c. 57694.03 d. 28408.12 Problem 3: What is tho nat present valua of this project? a. 42990.8 b. 42130.98 c. 5523.6 d. 43850.62 QUESTION 4 Froblem d: Afer you conduct your in ial analysis, you discover that the firm has the option so abanden the gropect and sen its specialized equlipment at the end of yoae B for $4189.25. What is the new NPV of the project? . 44747.4 b. 44747 c. 4213099 d. 42130,98 QUESTION 5 'Problem 5: Your boss is apprehensive about your worksheet and your estimation of this project's NPY. THIS LOOKS LIKE A JOB FOR SOLVER, you blurt but, only to find out that your boss bought a bostleg version of Excel that does net include the add-in. By changing the unit sales of your exsting model as it stands from the priot problem (i.e., assuming the option to abandon from in4 is exercisod, basically DO NOT REVERT YOUR ANSWER BACK BEFORE COMPLETING THE PROBLEM), find the number of unit sales needed in year 1 to give you an NPV of zero." 3,2819,26 the number of unit snies needed in yoar 1 to give you an NPV of zero. " 7. 281926 b. 37609875 c 825775 a. 512593 QUESTION 6 'For problems 6-10: On the blank tab labeled Part 2, following best practicen for model creation (foematting, separating the variaties from the main table, eve.) create loan amortizasion tables for loans with the following characteristics. Loan Amount: 24000 Annuai Interest Pate: 0.08 Number of Paymeets Per Year:2 Loan Petiod in Years:12 Problem 6: For an equal payment term loan (such as a morigoge), What would be the interest-only portion of the third payment (Rounded to nearest dellar)? d. 452 b. 678 c. 720 d. QUESTION 7 'Problem 7: For an equal payment term loan (such as a morigage). what is the loan balance at the end of the third payment (rounded to nearest dollar)?" a. 21000 . 21000 b. 23303 c. 21845 d. 22545 QUESTION 8 'Problem 8: What is the EAIR for the equal payment ioun? (2 decimal places, eg 0.0%)4 a. 0.0609 b. 0.0592 c. 0.0644 d. 0.06 QUESTION 9 "Problem 9: For an equal amortization loan (NOT like a morigagel), what is the total payment in period 3 ?" a. 1660 b. 1000 c. 1720 d. 1417 - question Completion \$ratus: c. Tre0 d. 1417 QUESTION 10 "Probiem 10-For an equal amorization loan, what is the amount of interest paid in the third paryment?" a. 600 b. 660 c. 720 d. 452 QUESTION 11 "For Problems 11-15: You have the option to lease or purchase an asset which will have a 3 year life. You can purchase the asset for $17500, of you can lease three years with the first payment of $6500 due today (the cash flow stream wil be three equal payments at the beginning of periods 1 , 2 , and 3 ). You can borto the bank at 18%. On the tab labeled Part 3, Create a spreadsheet model to compare your lease vs. purchase decilion. The model should follow best practices your variables from the model or tables you're building), and it should mep out the cash flows for each period under each scenario. Problem 11: What is the NP. costs of the tease? (Round to the nearest dollar.)" a. 16677 b. 16594 c. 17060.571 d. 18542 OUESTION 12 ok Save and Submit to save and submit. Click Save All Answers to save all answers: 'Problem 12: Use an ifO function to determine your lease vs purchase decinion based on the NPV of the lease-minus-purchase decision. Select its output here (note, you must also have a property functioning IF function producing this output in your submitted spreadeheet to recolve full credit). " a. What even is an IF function man b. Purchase c. Lease d.OdBeans: QUESTION 13 'Problem 13: Create an additional column that contains the "Lease Minus Purchase" cash flows, and calculate the IRR of the differential cash fows, (Round to the nearest 2 decimal places, ex: 0,x%)n a. 0.061 b. =0.14875 c. 0.18 d. 0.119 QUESTION 14 Problem 14: You discover that the asset will have a salvage value at the end of Year 3 of $1000. What is the new NPV of the costs of the purchase? a. 16677 b. 17476 c. 16653 d. 16677 ck Save and Submit to save and submit. Click Save All Answers to save all answers. Problem 14: You discover that the asset will have a salvage value at the end of Year 3 of $1000. What is the new NPV of the costs of the purchese? a. 16677 b. 17476 c. 16653 d. 10677 QUESTION 15 'Problem 15: Determine the purchase price at which you would be indifferent between the lease or the purchase decision (given the new saivage value). Note that e you know, in your heart, that Solver would be a great way to appronch this problem, but alas, you are constrained. Using your completed model, subsitute the folle numbers in to approximate what Solver is doing. Round to the nearest dollar, " a. 17524 b. 23177 c. 17675 d. 17476