UNIVERSITI TUNKU ABDUL RAHMAN GROUP ASSIGNMENT (FEB 2017): TRIMESTER 201701 UKEQ1013/UBEQ1013 QUANTITATIVE TECHNIQUES I (Total: 65 marks) Instruction: 1) Use Microsoft Excel ONLY to solve the following problems. 2) Answers must be type-written nicely. ALL input and OUTPUT printouts shall be submitted together with the answers. 3) The report should include a cover page as shown in Appendix 1. Each assignment group will consists of maximum SIX (6) students. The report should be bound using tape binding (strictly no comb binding or other binding methods). Do not use plastic cover sheets when binding the report. 4) The submission date is on WEEK 10 (24/03/2017) before 12pm . Late submission 10 marks will be deducted. 5) You must submit at respective tutor's room. Problem 1: Eastern Electronics Company Capital Investment Valuation The management of Eastern Electronics Company is considering to purchase an equipment to be attached with the main manufacturing machine. The equipment will cost RM6,000 and will increase annual cash inflow by RM2,200. The useful life of the equipment is 6 years. After 6 years it will have no salvage value. The management wants a 20% return on all investments. i) Compute net present value of this investment project. (8 marks) ii) Should the equipment be purchased according to NPV analysis? (2 marks) Problem 2: Ideal Diet An ideal diet would meet or exceed basic nutritional requirements, be inexpensive, have variety, and be \"pleasing to the palate". Consider the following list of foods with their nutritional profile. UNIVERSITI TUNKU ABDUL RAHMAN GROUP ASSIGNMENT (FEB 2017): TRIMESTER 201701 Food Portion size Energy (Kcal) Protein (grams) Calcium (mg) Oat Chicken Eggs Milk Meat Beans 28 g 100 g 2 big ones 237 cc 170 g 260 g 110 205 160 160 420 260 4 32 13 8 4 14 2 12 54 285 22 80 Price (RM/portion ) 30 240 130 90 200 60 Limit (portions/day ) 4 3 2 8 2 2 After consulting with nutritionists, we decree that a satisfactory diet has at least 2000 kcal of energy, 55 grams of protein, and 800 mg of calcium (vitamins and iron are supplied by pills). While some of us would be happy to subsist on 10 servings of meat and beans, we have decided to impose variety by having a limit on the number of servings/day for each of our six foods. What is the least cost satisfactory diet? Note: You will be required to model this problem approximately using continuous variables and round off to two decimal points after solution. i) Build the Linear Programming model for the above problem. (11 marks) ii) What is the number of servings/day for each of our six foods? (6 marks) iii) What is the least cost satisfactory diet adopted the optimal solution generated in the LP Model? (5 marks) iv) What is the shadow price for the calories' constraint? How do you interpret it? (4 marks) v) If we would like to add 150 mg of calcium to our diet, what is the implication to the cost? Explain your answer. (3 marks) Problem 3: Alphro Company Equipment Fund Alphro company wants to set up a sinking fund for the repayment of a loan of RM100 million at the end of four years. It makes equal deposits at the end of each month into a fund that earns interest at 22% per year compounded monthly. Determine the size of each deposit and construct a sinking fund schedule. (26 marks) UKEQ1013/UBEQ1013 QUANTITATIVE TECHNIQUES I Cover Page of Assignment (Appendix 1) UNIVERSITI TUNKU ABDUL RAHMAN GROUP ASSIGNMENT (FEB 2017): TRIMESTER 201701 No 1 2 3 4 5 6 Tutor : Tutorial Group : Name Student ID Course MARKING SCHEME TEMPLATE Question Marks Allocation 1 10 marks 2 29 marks 3 26 marks Total Marks 65 marks Due Date : 12PM, 24th March 2017 Marks Awarded