Question 1: (2.

5 points)
Consider a 6-year project with the following information: initial fixed asset investment = $460,000; straight-line depreciation t
costs = $19; fixed costs = $188,600; quantity sold = 90,528 units; tax rate = 32 percent; 14% return on this project. What is NPV
project, varying the required returns from 8%, 10%, 12%, 14%, 16% and varying quantity sold from 76,949; 81,475; 86,000; 90

INPUT OUTPUT
intial cost 460000 Cash Flow Forecasts 1 2
year 6 Sales Revenue $3,077,952 $3,077,952
price 34 Variable Costs $1,720,032 $1,720,032
variable cost 19 Gross Margin $1,357,920 $1,357,920
fixed cost 188600
tax rate 32% Cash Fixed Costs $188,600 $188,600
rate 14% Depreciation $76,667 $76,667
quantily sold 90,528 Total Fixed Costs $265,267 $265,267

Operating Profit $1,092,653 $1,092,653

Taxes $349,649 $349,649
Net Profit $743,004 $743,004

Add Back Depreciation $76,667 $76,667

Operating Cash Flow $819,671 $819,671

Investment Cash Flow ($460,000) $0 $0

Cash Flows ($460,000) $819,671 $819,671

Present Value of Each Cash Flow ($460,000) $719,010 $630,710
Net Present Value $2,727,428

DATA TABLE
$2,727,428 76,949 81,475 86,000
8%
10%
12%
14%
0,000; straight-line depreciation to zero over the 6-year life; zero salvage value; price = $34; variable
eturn on this project. What is NPV? Use Data Table to do a sensitivity analysis on the NPV of the
from 76,949; 81,475; 86,000; 90,528; 95,055; 99,581; 108,634 units.

3 4 5 6
$3,077,952 $3,077,952 $3,077,952 $3,077,952
$1,720,032 $1,720,032 $1,720,032 $1,720,032
$1,357,920 $1,357,920 $1,357,920 $1,357,920

$188,600 $188,600 $188,600 $188,600

$76,667 $76,667 $76,667 $76,667
$265,267 $265,267 $265,267 $265,267

$1,092,653 $1,092,653 $1,092,653 $1,092,653

$349,649 $349,649 $349,649 $349,649
$743,004 $743,004 $743,004 $743,004

$76,667 $76,667 $76,667 $76,667

$819,671 $819,671 $819,671 $819,671

$0 $0 $0 $0

$819,671 $819,671 $819,671 $819,671

$553,255 $485,311 $425,711 $373,431

90,528 90,055 99,581 108,634

Question 2: (2.5 points)
You borrow $500,000 to buy a house. The mortgage rate is 4.5 percent and the loan period is 10 years. Payments are made mon
for your mortgage payment schedule with the clear breakdown in term of interest payment and principal payment in every perio
and IPMT function.

payment 500000
rate 4.50% 0.375%
year 10 120
IPMT
Period Beginning Balance Total Payment Interest Payment Principal Payment
1 500000 $5,181.92 $1,875.00 $3,306.92
2 $496,693.08 $5,181.92 $1,862.60 $3,319.32
3 $493,373.76 $5,181.92 $1,850.15 $3,331.77
4 $490,041.99 $5,181.92 $1,837.66 $3,344.26
5 $486,697.73 $5,181.92 $1,825.12 $3,356.80
6 $483,340.92 $5,181.92 $1,812.53 $3,369.39
7 $479,971.53 $5,181.92 $1,799.89 $3,382.03
8 $476,589.50 $5,181.92 $1,787.21 $3,394.71
9 $473,194.79 $5,181.92 $1,774.48 $3,407.44
10 $469,787.35 $5,181.92 $1,761.70 $3,420.22
11 $466,367.14 $5,181.92 $1,748.88 $3,433.04
12 $462,934.09 $5,181.92 $1,736.00 $3,445.92
13 $459,488.17 $5,181.92 $1,723.08 $3,458.84
14 $456,029.33 $5,181.92 $1,710.11 $3,471.81
15 $452,557.52 $5,181.92 $1,697.09 $3,484.83
16 $449,072.69 $5,181.92 $1,684.02 $3,497.90
17 $445,574.80 $5,181.92 $1,670.91 $3,511.01
18 $442,063.78 $5,181.92 $1,657.74 $3,524.18
19 $438,539.60 $5,181.92 $1,644.52 $3,537.40
20 $435,002.20 $5,181.92 $1,631.26 $3,550.66
21 $431,451.54 $5,181.92 $1,617.94 $3,563.98
22 $427,887.56 $5,181.92 $1,604.58 $3,577.34
23 $424,310.22 $5,181.92 $1,591.16 $3,590.76
24 $420,719.46 $5,181.92 $1,577.70 $3,604.22
25 $417,115.24 $5,181.92 $1,564.18 $3,617.74
26 $413,497.50 $5,181.92 $1,550.62 $3,631.30
27 $409,866.20 $5,181.92 $1,537.00 $3,644.92
28 $406,221.28 $5,181.92 $1,523.33 $3,658.59
29 $402,562.69 $5,181.92 $1,509.61 $3,672.31
30 $398,890.38 $5,181.92 $1,495.84 $3,686.08
31 $395,204.29 $5,181.92 $1,482.02 $3,699.90
32 $391,504.39 $5,181.92 $1,468.14 $3,713.78
33 $387,790.61 $5,181.92 $1,454.21 $3,727.71
34 $384,062.91 $5,181.92 $1,440.24 $3,741.68
35 $380,321.22 $5,181.92 $1,426.20 $3,755.72
36 $376,565.51 $5,181.92 $1,412.12 $3,769.80
37 $372,795.71 $5,181.92 $1,397.98 $3,783.94
38 $369,011.77 $5,181.92 $1,383.79 $3,798.13
39 $365,213.64 $5,181.92 $1,369.55 $3,812.37
40 $361,401.27 $5,181.92 $1,355.25 $3,826.67
41 $357,574.61 $5,181.92 $1,340.90 $3,841.02
42 $353,733.59 $5,181.92 $1,326.50 $3,855.42
43 $349,878.17 $5,181.92 $1,312.04 $3,869.88
44 $346,008.30 $5,181.92 $1,297.53 $3,884.39
45 $342,123.91 $5,181.92 $1,282.96 $3,898.96
46 $338,224.95 $5,181.92 $1,268.34 $3,913.58
47 $334,311.37 $5,181.92 $1,253.67 $3,928.25
48 $330,383.12 $5,181.92 $1,238.94 $3,942.98
49 $326,440.14 $5,181.92 $1,224.15 $3,957.77
50 $322,482.37 $5,181.92 $1,209.31 $3,972.61
51 $318,509.76 $5,181.92 $1,194.41 $3,987.51
52 $314,522.25 $5,181.92 $1,179.46 $4,002.46
53 $310,519.78 $5,181.92 $1,164.45 $4,017.47
54 $306,502.31 $5,181.92 $1,149.38 $4,032.54
55 $302,469.78 $5,181.92 $1,134.26 $4,047.66
56 $298,422.12 $5,181.92 $1,119.08 $4,062.84
57 $294,359.28 $5,181.92 $1,103.85 $4,078.07
58 $290,281.21 $5,181.92 $1,088.55 $4,093.37
59 $286,187.84 $5,181.92 $1,073.20 $4,108.72
60 $282,079.13 $5,181.92 $1,057.80 $4,124.12
61 $277,955.00 $5,181.92 $1,042.33 $4,139.59
62 $273,815.41 $5,181.92 $1,026.81 $4,155.11
63 $269,660.30 $5,181.92 $1,011.23 $4,170.69
64 $265,489.61 $5,181.92 $995.59 $4,186.33
65 $261,303.27 $5,181.92 $979.89 $4,202.03
66 $257,101.24 $5,181.92 $964.13 $4,217.79
67 $252,883.45 $5,181.92 $948.31 $4,233.61
68 $248,649.84 $5,181.92 $932.44 $4,249.48
69 $244,400.36 $5,181.92 $916.50 $4,265.42
70 $240,134.94 $5,181.92 $900.51 $4,281.41
71 $235,853.52 $5,181.92 $884.45 $4,297.47
72 $231,556.05 $5,181.92 $868.34 $4,313.59
73 $227,242.47 $5,181.92 $852.16 $4,329.76
74 $222,912.71 $5,181.92 $835.92 $4,346.00
75 $218,566.71 $5,181.92 $819.63 $4,362.30
76 $214,204.41 $5,181.92 $803.27 $4,378.65
77 $209,825.76 $5,181.92 $786.85 $4,395.07
78 $205,430.69 $5,181.92 $770.37 $4,411.56
79 $201,019.13 $5,181.92 $753.82 $4,428.10
80 $196,591.03 $5,181.92 $737.22 $4,444.70
81 $192,146.33 $5,181.92 $720.55 $4,461.37
82 $187,684.96 $5,181.92 $703.82 $4,478.10
83 $183,206.85 $5,181.92 $687.03 $4,494.89
84 $178,711.96 $5,181.92 $670.17 $4,511.75
85 $174,200.21 $5,181.92 $653.25 $4,528.67
86 $169,671.54 $5,181.92 $636.27 $4,545.65
 87 $165,125.89 $5,181.92 $619.22 $4,562.70
88 $160,563.19 $5,181.92 $602.11 $4,579.81
89 $155,983.38 $5,181.92 $584.94 $4,596.98
90 $151,386.40 $5,181.92 $567.70 $4,614.22
91 $146,772.18 $5,181.92 $550.40 $4,631.52
92 $142,140.65 $5,181.92 $533.03 $4,648.89
93 $137,491.76 $5,181.92 $515.59 $4,666.33
94 $132,825.43 $5,181.92 $498.10 $4,683.83
95 $128,141.61 $5,181.92 $480.53 $4,701.39
96 $123,440.22 $5,181.92 $462.90 $4,719.02
97 $118,721.20 $5,181.92 $445.20 $4,736.72
98 $113,984.48 $5,181.92 $427.44 $4,754.48
99 $109,230.00 $5,181.92 $409.61 $4,772.31
100 $104,457.69 $5,181.92 $391.72 $4,790.20
101 $99,667.49 $5,181.92 $373.75 $4,808.17
102 $94,859.32 $5,181.92 $355.72 $4,826.20
103 $90,033.13 $5,181.92 $337.62 $4,844.30
104 $85,188.83 $5,181.92 $319.46 $4,862.46
105 $80,326.37 $5,181.92 $301.22 $4,880.70
106 $75,445.67 $5,181.92 $282.92 $4,899.00
107 $70,546.67 $5,181.92 $264.55 $4,917.37
108 $65,629.30 $5,181.92 $246.11 $4,935.81
109 $60,693.49 $5,181.92 $227.60 $4,954.32
110 $55,739.17 $5,181.92 $209.02 $4,972.90
111 $50,766.27 $5,181.92 $190.37 $4,991.55
112 $45,774.72 $5,181.92 $171.66 $5,010.27
113 $40,764.46 $5,181.92 $152.87 $5,029.05
114 $35,735.41 $5,181.92 $134.01 $5,047.91
115 $30,687.49 $5,181.92 $115.08 $5,066.84
116 $25,620.65 $5,181.92 $96.08 $5,085.84
117 $20,534.81 $5,181.92 $77.01 $5,104.91
118 $15,429.89 $5,181.92 $57.86 $5,124.06
119 $10,305.83 $5,181.92 $38.65 $5,143.27
120 $5,162.56 $5,181.92 $19.36 $5,162.56
0 years. Payments are made monthly. Please build up
principal payment in every period by using Goal Seek

Goal seek PMT 5,181.92

Ending Payment Period Beginning Balance Total Payment Interest Payment
$496,693.08 1 500,000.00 5,181.92 1,875.00
$493,373.76 2 496,693.08 5,181.92 1,862.60
$490,041.99 3 493,373.76 5,181.92 1,850.15
$486,697.73 4 490,041.99 5,181.92 1,837.66
$483,340.92 5 486,697.73 5,181.92 1,825.12
$479,971.53 6 483,340.92 5,181.92 1,812.53
$476,589.50 7 479,971.53 5,181.92 1,799.89
$473,194.79 8 476,589.50 5,181.92 1,787.21
$469,787.35 9 473,194.79 5,181.92 1,774.48
$466,367.14 10 469,787.35 5,181.92 1,761.70
$462,934.09 11 466,367.14 5,181.92 1,748.88
$459,488.17 12 462,934.09 5,181.92 1,736.00
$456,029.33 13 459,488.17 5,181.92 1,723.08
$452,557.52 14 456,029.33 5,181.92 1,710.11
$449,072.69 15 452,557.52 5,181.92 1,697.09
$445,574.80 16 449,072.69 5,181.92 1,684.02
$442,063.78 17 445,574.80 5,181.92 1,670.91
$438,539.60 18 442,063.78 5,181.92 1,657.74
$435,002.20 19 438,539.60 5,181.92 1,644.52
$431,451.54 20 435,002.20 5,181.92 1,631.26
$427,887.56 21 431,451.54 5,181.92 1,617.94
$424,310.22 22 427,887.56 5,181.92 1,604.58
$420,719.46 23 424,310.22 5,181.92 1,591.16
$417,115.24 24 420,719.46 5,181.92 1,577.70
$413,497.50 25 417,115.24 5,181.92 1,564.18
$409,866.20 26 413,497.50 5,181.92 1,550.62
$406,221.28 27 409,866.20 5,181.92 1,537.00
$402,562.69 28 406,221.28 5,181.92 1,523.33
$398,890.38 29 402,562.69 5,181.92 1,509.61
$395,204.29 30 398,890.38 5,181.92 1,495.84
$391,504.39 31 395,204.29 5,181.92 1,482.02
$387,790.61 32 391,504.39 5,181.92 1,468.14
$384,062.91 33 387,790.61 5,181.92 1,454.21
$380,321.22 34 384,062.91 5,181.92 1,440.24
$376,565.51 35 380,321.22 5,181.92 1,426.20
$372,795.71 36 376,565.51 5,181.92 1,412.12
$369,011.77 37 372,795.71 5,181.92 1,397.98
$365,213.64 38 369,011.77 5,181.92 1,383.79
$361,401.27 39 365,213.64 5,181.92 1,369.55
$357,574.61 40 361,401.27 5,181.92 1,355.25
$353,733.59 41 357,574.61 5,181.92 1,340.90
$349,878.17 42 353,733.59 5,181.92 1,326.50
$346,008.30 43 349,878.17 5,181.92 1,312.04
$342,123.91 44 346,008.30 5,181.92 1,297.53
$338,224.95 45 342,123.91 5,181.92 1,282.96
$334,311.37 46 338,224.95 5,181.92 1,268.34
$330,383.12 47 334,311.37 5,181.92 1,253.67
$326,440.14 48 330,383.12 5,181.92 1,238.94
$322,482.37 49 326,440.14 5,181.92 1,224.15
$318,509.76 50 322,482.37 5,181.92 1,209.31
$314,522.25 51 318,509.76 5,181.92 1,194.41
$310,519.78 52 314,522.25 5,181.92 1,179.46
$306,502.31 53 310,519.78 5,181.92 1,164.45
$302,469.78 54 306,502.31 5,181.92 1,149.38
$298,422.12 55 302,469.78 5,181.92 1,134.26
$294,359.28 56 298,422.12 5,181.92 1,119.08
$290,281.21 57 294,359.28 5,181.92 1,103.85
$286,187.84 58 290,281.21 5,181.92 1,088.55
$282,079.13 59 286,187.84 5,181.92 1,073.20
$277,955.00 60 282,079.13 5,181.92 1,057.80
$273,815.41 61 277,955.00 5,181.92 1,042.33
$269,660.30 62 273,815.41 5,181.92 1,026.81
$265,489.61 63 269,660.30 5,181.92 1,011.23
$261,303.27 64 265,489.61 5,181.92 995.59
$257,101.24 65 261,303.27 5,181.92 979.89
$252,883.45 66 257,101.24 5,181.92 964.13
$248,649.84 67 252,883.45 5,181.92 948.31
$244,400.36 68 248,649.84 5,181.92 932.44
$240,134.94 69 244,400.36 5,181.92 916.50
$235,853.52 70 240,134.94 5,181.92 900.51
$231,556.05 71 235,853.52 5,181.92 884.45
$227,242.47 72 231,556.05 5,181.92 868.34
$222,912.71 73 227,242.47 5,181.92 852.16
$218,566.71 74 222,912.71 5,181.92 835.92
$214,204.41 75 218,566.71 5,181.92 819.63
$209,825.76 76 214,204.41 5,181.92 803.27
$205,430.69 77 209,825.76 5,181.92 786.85
$201,019.13 78 205,430.69 5,181.92 770.37
$196,591.03 79 201,019.13 5,181.92 753.82
$192,146.33 80 196,591.03 5,181.92 737.22
$187,684.96 81 192,146.33 5,181.92 720.55
$183,206.85 82 187,684.96 5,181.92 703.82
$178,711.96 83 183,206.85 5,181.92 687.03
$174,200.21 84 178,711.96 5,181.92 670.17
$169,671.54 85 174,200.21 5,181.92 653.25
$165,125.89 86 169,671.54 5,181.92 636.27
$160,563.19 87 165,125.89 5,181.92 619.22
$155,983.38 88 160,563.19 5,181.92 602.11
$151,386.40 89 155,983.38 5,181.92 584.94
$146,772.18 90 151,386.40 5,181.92 567.70
$142,140.65 91 146,772.18 5,181.92 550.40
$137,491.76 92 142,140.65 5,181.92 533.03
$132,825.43 93 137,491.76 5,181.92 515.59
$128,141.61 94 132,825.43 5,181.92 498.10
$123,440.22 95 128,141.61 5,181.92 480.53
$118,721.20 96 123,440.22 5,181.92 462.90
$113,984.48 97 118,721.20 5,181.92 445.20
$109,230.00 98 113,984.48 5,181.92 427.44
$104,457.69 99 109,230.00 5,181.92 409.61
$99,667.49 100 104,457.69 5,181.92 391.72
$94,859.32 101 99,667.49 5,181.92 373.75
$90,033.13 102 94,859.32 5,181.92 355.72
$85,188.83 103 90,033.13 5,181.92 337.62
$80,326.37 104 85,188.83 5,181.92 319.46
$75,445.67 105 80,326.37 5,181.92 301.22
$70,546.67 106 75,445.67 5,181.92 282.92
$65,629.30 107 70,546.67 5,181.92 264.55
$60,693.49 108 65,629.30 5,181.92 246.11
$55,739.17 109 60,693.49 5,181.92 227.60
$50,766.27 110 55,739.17 5,181.92 209.02
$45,774.72 111 50,766.27 5,181.92 190.37
$40,764.46 112 45,774.72 5,181.92 171.66
$35,735.41 113 40,764.46 5,181.92 152.87
$30,687.49 114 35,735.41 5,181.92 134.01
$25,620.65 115 30,687.49 5,181.92 115.08
$20,534.81 116 25,620.65 5,181.92 96.08
$15,429.89 117 20,534.81 5,181.92 77.01
$10,305.83 118 15,429.89 5,181.92 57.86
$5,162.56 119 10,305.83 5,181.92 38.65
$0.00 120 5,162.56 5,181.92 19.36
Principal Payment Ending Payment
3,306.92 496,693.08
3,319.32 493,373.76
3,331.77 490,041.99
3,344.26 486,697.73
3,356.80 483,340.92
3,369.39 479,971.53
3,382.03 476,589.50
3,394.71 473,194.79
3,407.44 469,787.35
3,420.22 466,367.14
3,433.04 462,934.09
3,445.92 459,488.17
3,458.84 456,029.33
3,471.81 452,557.52
3,484.83 449,072.69
3,497.90 445,574.80
3,511.01 442,063.78
3,524.18 438,539.60
3,537.40 435,002.20
3,550.66 431,451.54
3,563.98 427,887.56
3,577.34 424,310.22
3,590.76 420,719.46
3,604.22 417,115.24
3,617.74 413,497.50
3,631.30 409,866.20
3,644.92 406,221.28
3,658.59 402,562.69
3,672.31 398,890.38
3,686.08 395,204.29
3,699.90 391,504.39
3,713.78 387,790.61
3,727.71 384,062.91
3,741.68 380,321.22
3,755.72 376,565.51
3,769.80 372,795.71
3,783.94 369,011.77
3,798.13 365,213.64
3,812.37 361,401.27
3,826.67 357,574.61
3,841.02 353,733.59
3,855.42 349,878.17
3,869.88 346,008.30
3,884.39 342,123.91
3,898.96 338,224.95
3,913.58 334,311.37
3,928.25 330,383.12
3,942.98 326,440.14
3,957.77 322,482.37
3,972.61 318,509.76
3,987.51 314,522.25
4,002.46 310,519.78
4,017.47 306,502.31
4,032.54 302,469.78
4,047.66 298,422.12
4,062.84 294,359.28
4,078.07 290,281.21
4,093.37 286,187.84
4,108.72 282,079.13
4,124.12 277,955.00
4,139.59 273,815.41
4,155.11 269,660.30
4,170.69 265,489.61
4,186.33 261,303.27
4,202.03 257,101.24
4,217.79 252,883.45
4,233.61 248,649.84
4,249.48 244,400.36
4,265.42 240,134.94
4,281.41 235,853.52
4,297.47 231,556.05
4,313.59 227,242.47
4,329.76 222,912.71
4,346.00 218,566.71
4,362.30 214,204.41
4,378.65 209,825.76
4,395.07 205,430.69
4,411.56 201,019.13
4,428.10 196,591.03
4,444.70 192,146.33
4,461.37 187,684.96
4,478.10 183,206.85
4,494.89 178,711.96
4,511.75 174,200.21
4,528.67 169,671.54
4,545.65 165,125.89
4,562.70 160,563.19
4,579.81 155,983.38
4,596.98 151,386.40
4,614.22 146,772.18
4,631.52 142,140.65
4,648.89 137,491.76
4,666.33 132,825.43
4,683.83 128,141.61
4,701.39 123,440.22
4,719.02 118,721.20
4,736.72 113,984.48
4,754.48 109,230.00
4,772.31 104,457.69
4,790.20 99,667.49
4,808.17 94,859.32
4,826.20 90,033.13
4,844.30 85,188.83
4,862.46 80,326.37
4,880.70 75,445.67
4,899.00 70,546.67
4,917.37 65,629.30
4,935.81 60,693.49
4,954.32 55,739.17
4,972.90 50,766.27
4,991.55 45,774.72
5,010.27 40,764.46
5,029.05 35,735.41
5,047.91 30,687.49
5,066.84 25,620.65
5,085.84 20,534.81
5,104.91 15,429.89
5,124.06 10,305.83
5,143.27 5,162.56
5,162.56 0.00
Question 3: (2.5 points)
VNIDEX & DPM as bellows: risk free rate at 3% ; risk premium at 4%; Corporate tax at 20%.
(1) Use REGRESSION to calculate the regression equation : rDPM,t = αDPM + βDPM * rVNINDEX,t .
(2) Use CAPM and Benninga-Sarig adjusted tax to calculate the cost of equity of DPM

PRICE Intercept -0.0118652712

Date VNINDEX DPM slope 0.5120135617
1 2-Jan-19 891.75 22 X Y rf 3%
2 1-Feb-19 908.67 22.4 0.018796 0.018019 rm-rf 4%
3 1-Mar-19 979.63 20.45 0.075193 -0.091078 rm 7%
4 1-Apr-19 988.53 19.25 0.009044 -0.060472 tax 20%
5 2-May-19 978.5 18.05 -0.010198 -0.064365
6 3-Jun-19 946.47 18 -0.033282 -0.002774 CAMP 5.048%
7 1-Jul-19 965.61 15.8 0.020021 -0.130362 CAMP ADJUDTED TAX
8 1-Aug-19 997.39 14.35 0.032382 -0.09626
9 3-Sep-19 979.36 13.65 -0.018243 -0.05001
10 1-Oct-19 999.59 13.55 0.020446 -0.007353 SUMMARY OUTPUT
11 1-Nov-19 1015.59 13.9 0.01588 0.025502
12 2-Dec-19 959.31 12.8 -0.057011 -0.082444 Regression Statistics
13 2-Jan-20 966.67 12.95 0.007643 0.011651 Multiple R 0.4064437518
14 3-Feb-20 928.14 11.15 -0.040675 -0.149656 R Square 0.1651965234
15 2-Mar-20 884.43 12 -0.048239 0.073467 Adjusted R Square 0.1330886974
16 1-Apr-20 680.23 12.25 -0.262512 0.020619 Standard Error 0.0930819052
17 4-May-20 762.47 13.6 0.114132 0.104544 Observations 28
18 1-Jun-20 878.67 15.05 0.141846 0.101308
19 1-Jul-20 843.49 14.4 -0.040861 -0.04415 ANOVA
20 3-Aug-20 814.65 14.15 -0.034789 -0.017514 df
21 1-Sep-20 891.73 16.55 0.090405 0.156671 Regression 1
22 1-Oct-20 914.09 18.8 0.024766 0.127471 Residual 26
23 2-Nov-20 933.68 17.15 0.021205 -0.091859 Total 27
24 1-Dec-20 1008.87 17.15 0.077452 0
25 4-Jan-21 1120.47 19.2 0.104917 0.112912 Coefficients
26 1-Feb-21 1035.51 15.3 -0.078854 -0.227057 Intercept -0.0118652712
27 1-Mar-21 1186.17 17.5 0.135836 0.134348 X Variable 1 0.5120135617
28 1-Apr-21 1216.1 20.55 0.024919 0.16066
29 4-May-21 1242.2 18.7 0.021235 -0.094337
 4.755%

SS MS F Significance F
0.044578 0.044578 5.145055 0.0318510921
0.22527 0.008664
0.269848

Standard Error t Stat P-value Lower 95% Upper 95%Lower 95.0%

Upper 95.0%
0.017793 -0.666865 0.510734 -0.0484385206 0.024708 -0.048439 0.024708
0.225729 2.268271 0.031851 0.0480219126 0.976005 0.048022 0.976005
A cake-mix manufacturer has 4 different plants throughout the country. It can buy sugar from 5 different companies. The cost
transportation costs from each company to each plant are known. Where should the company buy sugar and how much shou
and minimize cost of sugar and shipping?

Company 1 Company 2 Company 3 Company 4 Company 5 Amounts of sugar to buy (tons)

Sugar prices (per ton) $40 $49 $47 $45 $44
Plant 1
Cost of shipping from companies to plants (per ton) Plant 2
Company 1 Company 2 Company 3 Company 4 Company 5 Demand Plant 3
Plant 1 $8 $4 $5 $4 $3 420 Plant 4
Plant 2 $7 $6 $3 $2 $4 360 Total
Plant 3 $7 $3 $7 $5 $2 400 Available supply
Plant 4 $8 $2 $5 $6 $7 375
Available supply 350 250 200 300 500 Cost of sugar
Cost of shipping
 5 different companies. The cost of the sugar and the
y buy sugar and how much should it buy, to meet the demand

mounts of sugar to buy (tons)

Company 1 Company 2 Company 3 Company 4 Company 5 Total Demand
13.39265 0 0 59.50031 347.107 420 420
0 0 119.5003 240.4997 0 360 360
247.107 0 0 0 152.893 400 400
89.50031 250 35.49969 0 0 375 375
350 250 155 300 500
350 250 200 300 500

$14,000 $12,250 $7,285 $13,500 $22,000 $69,035

$2,553 $500 $536 $719 $1,347 $5,655
Total cost $74,690