Toaster	Robot
Investment	$650,000	$675,000
Year 1	$150,000	$400,000
Year 2	$500,000	$350,000
Year 3	$225,000	$250,000
Year 4	$125,000

Your company is looking at developing one of two potential kitchen products – either a toaster or a robot. The discount rate is 4%.

• Calculate the NPV for Toaster and Robot
• Which project is better? Why?

Problem 2. Using the data collected for Colleges and Universities, make a rational decision where to study. Explain your results. Note: Problem 2 assumes creativity in analysis. There is no single rule or algorithm for analytics. Be creative. For example: you may use charts or excel Data Analysis tool pack to examine the data. You can apply any method we have studied so far to make a conclusion and find the best play to study BASED ON THE FACTS (study findings), not based on the opinion. Colleges and Universities School Amherst Barnard Bates Bowdoin Bryn Mawr Carleton Claremont McKenna Colby Colgate Davisdson Grinnell Hamilton Haverford Middlebury Mount Holyoke Oberlin Occidental Pomona Smith Swarthnore Vassar Washinton and Lee Wellesley Wesleyan (CT) Williams Type Lib Arts Lib Arts Lib Arts Lib Arts Lib Arts Lib Arts Lib Arts Lib Arts Lib Arts Lib Arts Lib Arts Lib Arts Lib Arts Lib Arts Lib Arts Lib Arts Lib Arts Lib Arts Lib Arts Lib Arts Lib Arts Lib Arts Lib Arts Lib Arts Lib Arts Median SAT Acceptance Rate Expenditures/Student Top 10% HS Graduation % 93 1315 1220 22% $ 53% $ 26,636 17,653 85 69 80 School Berkeley Brown Cal Tech Carnegie Mellon 1240 36% $ 17,554 58 88 1300 24% S 25,703 78 1255 56% $ 18,847 70 1300 40% $ 15,904 75 80 1260 36% $ 20,377 68 74 1200 46% $ 18,872 52 84 1258 38% $ 17,520 61 90 84 Columbia Cornell Duke Georgetown Harvard Johns Hopkins 73 MIT 85 Northwestern 87 Princeton 92 Rice 85 1230 36% $ 17,721 77 89 1244 67% $ 22,301 65 Type University University University University University University University University University University University University University University University University University University University University University University 1215 38% S 20,722 51 1285 35% $ 19,418 71 65 1255 25% $ 24,718 1200 61% S 23,358 47 83 Stanford 1247 54% S 23,591 64 77 U Michigan 1170 49% $ 20,192 54 72 U of Chicago 1320 33% S 26,668 79 80 U of Rochester 1195 57% S 25,271 65 87 1310 24% S 27,487 78 88 U Pennsylvania U Va UCLA UNC 1287 43% $ 20,179 53 84 1234 29% $ 17,998 61 78 1250 49% $ 27,879 76 86 Washington U (MO) University 1290 35% $ 19,948 73 91 Yale University 1336 28% $ 23,772 86 93 Median SAT Acceptance Rate Expenditures/Student Top 10% HS Graduation % 95 68 1176 1281 37% $ 24% $ 80 90 98 75 31% $ 64% $ 52 77 78 90 85 83 29% $ 30% $ 25% S 24% $ 18% $ 91 91 79 89 90 86 86 1400 1225 1268 1280 1310 1278 1370 1290 1357 1230 1340 1327 1370 1195 1300 1155 1280 1218 82 23,665 24,201 102,262 33,607 45,879 37,137 39,504 23,115 46,918 45,460 56,766 28,851 48,123 26,730 61,921 21,853 38,937 38,597 30,882 19,365 26,859 19,684 39,883 52,468 93 48% $ 30% S 47% $ 17% $ 24% S 18% S 60% S 45% $ 56% $ 41% S 88 88 77 73 37% $ 1142 43% $ 32% $ 1109 1225 54% S 1350 19% S 90 69 5 7 88 85 2 1 4 52 7 8 2 1 90 95 77 89 92 71 74 87 77 96 82 71 73 86 88 61 73 76 93 1 Colleges and Universities 2 3 School. Type 4 Amherst Lib Arts 5 Barnard Lib Arts 6 Bates Lib Arts 7 Bowdoin Lib Arts 8 Bryn Mawr Lib Arts 9 Carleton Lib Arts 10 Claremont McKenna Lib Arts 11 Colby Lib Arts 12 Colgate Lib Arts 13 Davisdson Lib Arts 14 Grinnell Lib Arts 15 Hamilton Lib Arts 16 Haverford Lib Arts 17 Middlebury Lib Arts 18 Mount Holyoke Lib Arts 19 Oberlin Lib Arts 20 Occidental Lib Arts 21 Pomona Lib Arts 22 Smith Lib Arts 23 Swarthnore Lib Arts 24 Vassar Lib Arts 25 Washinton and Lee Lib Arts 26 Wellesley Lib Arts 27 Wesleyan (CT) Lib Arts 28 Williams Lib Arts 29 30 31 32 Median SAT Acceptance Rate Expenditures/Studer Top 10% HS Graduation % 1315 93 1220 26,636 22% $ 53% $ School Berkeley Brown Cal Tech Type University University University 17,653 80 1240 36% $ 17,554 88 1300 24% $ 25,703 90 1255 56% $ 18,847 1300 40% $ 15,904 1260 36% $ 20,377 1200 46% $ 18,872 84 1258 38% $ 17,520 85 1230 36% $ 17,721 89 73 MIT 1244 67% $ 22,301 1215 38% $ 20,722 85 87 1285 35% $ Carnegie Mellon University 84 Columbia University 80 Cornell University 74 Duke University Georgetown University Harvard University Johns Hopkins University University University University University University University University University University University University University 19,418 Northwestern Princeton Rice Stanford 1255 25% $ 24,718 92 1200 61% $ 23,358 83 1247 54% $ 23,591 77 U Michigan 1170 49% $ 20,192 72 U of Chicago 1320 33% $ 26,668 80 U of Rochester 1195 57% $ 25,271 87 U Pennsylvania 1310 24% $ 27,487 88 U Va 1287 43% $ 20,179 84 UCLA UNC 1234 29% $ 17,998 78 1250 49% $ 27,879 86 Washington U (MC University 1290 35% $ 19,948 91 Yale University 1336 28% $ 23,772 93 85 58 78 70 75 69 68 52 61 77 65 51 71 65 47 64 54 79 65 78 53 61 76 73 86 Median SAT Acceptance Rate Expenditures/Studer Top 10% HS Graduation % 1176 95 68 1281 23,665 24,201 102,262 90 75 77 33,607 45,879 37,137 37% $ 24% $ 31% S 64% $ 29% $ 30% $ 25% $ 24% $ 18% $ 48% $ 30% $ 80 98 52 78 85 91 90 83 91 79 1400 1225 1268 1280 1310 1278 1370 1290 1357 1230 1340 1327 89 90 39,504 23,115 46,918 45,460 56,766 28,851 90 69 86 86 95 77 47% $ 17% $ 89 24% $ 1370 18% $ 60% $ 45% $ 1195 1300 1155 1280 1218 1142 1109 1225 1350 56% $ 41% S 37% $ 43% $ 48,123 26,730 61,921 21,853 38,937 38,597 30,882 19,365 26,859 19,684 39,883 52,468 85 92 71 74 52 87 77 96 82 71 90 32% $ 54% $ 19% $ 2888E2288TRES 93 77 73 73 86 61 73 76 93