I cannot figure out how to complete the answer for #1 and #6. Any help with that would be great, it is due tomorrow.

Instructions Put the names and email adresses of each student who works on this homework into the sheet titled "Your Info". Remember that you should only work in groups of three or fewer. The remaing sheets titled "Q1" through "Q6" each contains 1 question, although most questions have multiple parts. Make sure you do all your calculations in Excel. If you do the calculations by hand or in a calculator and then just type in the answer you will receive 0 points, even if the answer is correct. If you have any questions please ask, and good luck! sheet titled "Your Info". uestions have multiple calculator and then just Your Info Last Name Student 1 Student 2 Student 3 First Name Email Question 1 With the function Z(x,y)=2.5x^3-4y^2+7xy, calculate Z values at the different levels of X and Y in the table below. If Z is negative, show the value of Z in red with no negative sign (i.e. -3 should show 3). The operator for the exponent is a caret (^). For example, 2*x^2 - y^2 + 7*x*y + 30. Use absolute column and row references to facilitate calculations. (, )= 2.5 ^3 4 ^2+7 Z values Y va X variable -8 -4 -3 -2 -1 0 1 2 3 4 -6 -4 nd Y in the table below. If Z operator for the exponent is ces to facilitate 4 -2 Y variable 0 2 4 6 8 Question 2 Michael Bluth is interested in saving money to put his child, George Michael, through college. George Michael is turning five years old today, and Michael wants to start a new tradition where he deposits an amount into George Michael's savings acount each birthday until he turns 21. He wants the amount to be just enough to pay for all four years of George Michael's school. You can assume that tuition payments will be made on George Michael's 18th through 21st birthday. You can also assume that the current cost of tuition is $30,000 a year, and that the cost is supposed to increase by 3.5% a year. If George Michael's savings account earns 6% a year, how much should Michael deposit today? Deposit Amount Interest Rate College Cost This Year Cost Growth Rate PV of Total Tuition Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 George Michael's Age 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 $ 6.0% 30,000.00 3.5% Tuition Costs Deposits Balance ege. George Michael is s an amount into George enough to pay for all four George Michael's 18th ear, and that the cost is r, how much should Michael Question 3 You are considering an investment in two projects, A and B. Both have an initial cost of $65,000, and the projected cash flows listed below. Year 0 1 2 3 4 5 $ $ $ $ $ $ Project A (65,000.00) 4,000.00 13,000.00 30,000.00 35,000.00 40,000.00 $ $ $ $ $ $ Project B (65,000.00) 34,000.00 28,000.00 18,000.00 13,000.00 11,000.00 Assuming the weighted average cost of capital (WACC) is 10%, calculate the payback period, discounted payback period, NPV, and IRR. If the projects are mutually exclusive, which should be selected? WACC 10% Project A Project B Payback Period Discounted Payback Period Net Present Value Internal Rate of Return Best Project? Create an NPV profile chart for projects A and B. What is the exact crossover rate for these two projects Cross Over rate NPV Profile Data WACC NPV of A 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% NPV of B 22% 24% 26% 28% 30% 65,000, and the projected od, discounted payback e two projects Insert chart here Question 4 Universal Farm Supply's management has observed that it can sell as much fertilizer as it can stock and is considering the possibility of purchasing a forklif and expanding its warehouse space in order to be able to handle and stock more fertilizer (both are necessary to expand sales). The forklif costs $42,000 and would be depreciated to a salvage value of zero in 7 years, even though it is expected to last for 10 years. The warehouse expansion would cost $100,000 and would be depreciated to a salvage value of $60,000 in 10 years. The expansion would allow Universal to sell 1,000,000 more pounds per year at $0.20 per pound (the fertilizer actually costs Universal $0.17 per pound to manufacture). Universal's marginal tax rate is 25% and its required rate of return is 12%. Cost Salvage Value Life Depreciation Sales Increase Price Per Pound Cost Per Pound Profits Tax Rate Required Return Working Capital Year 0 1 2 3 4 5 6 7 8 9 10 $ $ $ $ Forklif Warehouse 42,000.00 $ 100,000.00 - $ 60,000.00 7 10 1,000,000 0.20 0.17 25% 12% None One Time CF Profits Depreciation A - What is the initial cash outlay associated with the expansion? Initial Outlay B - What is the cash flow from operations in year 3? Operating Cash Flow 3 C - What is the cash flow from operations in year 8? Operating Cash Flow 8 Taxes Afer Tax CF D - What is the net present value of of the expansion? Should Universal expand? NPV Expand? E - If Universal's required rate of return increased to 20% what would the NPV be? Should Universal expand if their required return increases to 20%? NPV Expand? F - What is the internal rate of return of the expansion? IRR can stock and is considering ble to handle and stock be depreciated to a house expansion would cost sion would allow Universal niversal $0.17 per pound to PV d Universal expand if their Question 5 Suppose you purchased a house 3 years ago and took out a mortgage for $200,000 with a 7.5% interest rate. The mortgage is a 30 year mortgage with monthly payments. Today you can refinance the loan at a 6% interest rate for a fee of $7,500. Assume that you would only refinance enough to repay the old loan and the cost of refinancing. A - Calculate the amount of the new loan and monthly payments of each loan (table below) Initial Loan Refinancing Annual Rate 7.50% 6.00% Life (In Years) 30 30 Loan Amount $ 200,000.00 B - How much would you still owe on the loan afer 3 years? Balace of old loan today C - If you expect to move in 5 years, would you want to refinance? Time Till Move Loan Balance at Move PV (consider balance and monthly payments) NPV of Refinancing Refinance? Year 5 Months 60 Old Loan New Loan Monthly Payments Periods Paid 36 0 % interest rate. The a 6% interest rate for a fee f refinancing. Cost $ 7,500.00 Question 6 You want to buy a car by taking out a 3 year loan for $15,000 with a 7% interest rate. A - Create an amortization table of the loan that shows the portion of interest and principal on each payment. Period 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Beginning Balance Payment Interest Principal Ending Balance B - Create a stacked column chart that shows interest and principal on each column Place Chart Here! C - Suppose that you have the option to buy the car with a 3 year car loan or lease the car during the same period of time. The 3 year lease option will require a $3,000 down payment and monthly payments of $350. If the salvage value of the new vehicle afer 3 years is $5,000 and you can invest at a rate of return of 4%, what is your best option? (Ignore your old vehicle.) Buy Personal Investment Rate Salvage Value Car Loan Payments $ 4% 5,000.00 $ $ 3,000.00 350.00 Lease Down Payment Monthly Payments NPV of Buying NPV of Leasing Buy or Lease? al on each payment. during the same period of s of $350. If the salvage %, what is your best option