Complete the following homework in 2 steps

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Business Finance

Description

Covering Chapter 4

See the attached PDF file

Complete each homework assignment in two (2) parts.

First, complete the mathematical requirements for each assigned question and subpart in a separate Excel tab. Please note that the excel spreadsheet should include four separate tabs - sheet 1 for programming part for scenario 1, sheet 2 for programming part for scenario 2, answer report for scenario 1, and answer report for scenario 2.

Second, complete the narrative description requirements of the assignment in a Word document. Complete the narrative in the Word document. When the question asks for calculations, make reference to the appropriate tab in the Excel file for reference. You may also copy and paste a picture or spreadsheet link within the body of the narrative as well.

- Show mathematical steps in detail to receive full credits

- Refer to rubric

Homework Guideline Video: https://calbaptist.webex.com/calbaptist/ldr.php?RCID=c43e0098b5ed2bd46dbedb0517911bac


**This must include both a Word and an Excel document.

**You have to use the "Solver" add-in to get the answer report in Excel

Unformatted Attachment Preview

The Samsung is considering taking part in one or more of tree different development projects – A, B, and C – that are about to be launched. Each project requires a significant investment over the next few year, and then would be sold upon completion. The projected cash flows (in millions of dollars) associated with each project are shown in the table below. Year 1 2 3 4 5 6 Project A -4.5 -6 -7 21 1 0 Project B -6 -8 -3 -2 25 0 Project C -11 -6 -6 -7.8 -4 38 Samsung has $10 million available now and expects to receive $6.5 million from other projects by the end of each year (1 through 6) that would be available for the ongoing investments the following year in projects A, B, and C. By acting now, the company may participate in each project either fully, fractionally (with other development partners), or not at all. If Samsung participates at less than 100 percent, then all the cash flows associated with that project are reduced proportionally. Company policy requires ending each year with a cash balance of at least $1.5 million. a. Solve this model using Excel Solver (keep in mind that you must set up a linear programming model in Excel Solver). In other words, what would be the (1) maximum ending balance, and (2) optimal level of participation rate for each project? Explain using at least 50 words. b. How would the results in part a change if Samsung has $11.5 million available now and expects to receive $7.5 million from other projects by the end of each year? In other words, what would be the maximum ending balance and optimal level of participation rate for each project in a new situation? (Now, you must run a new linear programming model by replacing $10 million (current starting balance) by $11.5 million (new starting balance) and $6.5 million (current value of other project) by $7.5 million (new value of other project). Explain the results using at least 50 words.
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Explanation & Answer

Here are the two parts: Mathematical requirements (Excel) and the Narrative description )MS)

Year

Project A

Project B

Project C

Cash inflow from other
projects available for
investment

1
2
3
4
5
6

-4.5
-6
-7
21
1
0

-6
-8
-3
-2
25
0

-11
-6
-6
-7.8
-4
38

6.5
6.5
6.5
6.5
6.5
6.5

0.6285714

1.0000

0

Participation Level:

Ending Cash Balance
10
7.671429
2.4
1.5
19.2
51.32857
57.82857

Year

Project A

1
2
3
4
5
6
Participation Level:

Project B

Cash inflow from other
projects available for
investment

Project C

-4.5
-6
-7
21
1
0

-6
-8
-3
-2
25
0

-11
-6
-6
-7.8
-4
38

0.8857

1

0

7.5
7.5
7.5
7.5
7.5
7.5

Ending Cash
Balance
11.5
9.01428565
3.2
1.5
25.6
58.985714
66.485714

Ending balance = $ 57.83 m
Optimal level of participation
Project A = 0.6286 = 62.86 %
Project B = 1 = 100%
Project C = 0 %
The cash inflow from other projects that is available for investment is 6.5 million dollars for ecah projects.
This was th...


Anonymous
I was having a hard time with this subject, and this was a great help.

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