If someone could complete this study guide attached for me with some explanations that would be great! My exam is on monday.

Baldwin Wallace University Fall 2016/ BUS 644 Financial Management II Exam 1- Study Guide 1) A firm is interested in developing a \"Decision Table\" to help sales managers manage their employee transportation expenses. Such a decision table will be used by the manager to determine whether an employee should be provided a new leased car, a new purchased car or pay the employee for miles used The car considered for acquisition is well equipped 2016 Chevy Impala. It costs $40,000 to buy including tax, title and other miscellaneous admin fees. The car is expected to be replaced once in three years. Following three competing alternatives are being considered. The maintenance on the car is included. Employee Reimbursement: Employee would submit monthly report indicating the mileage used for business. The firm will reimburse at $0.90 per mile. Purchase Alternative: Purchase for $40,000 inclusive of sales tax, title fees, etc. The expected resale value of the car is $21,000 at the end of 3 years. The resale value will go down by $0.20 for every mile driven in excess of 36,000 miles. If the miles driven is less than 36,000 miles, the resale value will not go up. Lease Alternative: Initial down payment including \"bank fee' is $4,900. Lease term = 36 months. Monthly lease payment (payable end of month) is $450. Miles allowed is 36,000 over the 36-month lease period. Payment at lease termination is $2,000 to prepare the vehicle for sale to a different customer; the payment is due at the end of 36th month. Charge for excess mileage is 70 cents per mile inclusive of taxes. The excess mileage charges are due to the dealership at the end of the lease term (end of 36 th month). The lease contract does not allow you to buy the vehicle at the end of lease termination. Other Key Assumptions: EPA Estimate for fuel efficiency of the car considered = 22mpg combined. Average cost of Gasoline $2.50/gallon. Car wash & other miscellaneous maintenance charges - ignore. You need to compute Present Value Cost of using the vehicle over a 3-year period for the above three mutually exclusive alternatives. Interest Rate is 9.00 percent /year Compounded Monthly. a) Present the results in a table similar to the one shown below. b) Show the results as line graphs with x-axis showing the miles driven and the y axis showing the monthly costs. Show cost as a positive number; it is ok to do that since we know that this problem is a cost only problem without any revenues. 2) Peter is a salesman for Kroner industries which specializes in making of natural gas furnaces. Peter has told you that your current furnace needs to be replaced and he offers the following choices. All furnaces have a useful life of 10 years. Choice L (Low efficiency furnace) Initial cost is $2,100 including complete installation. Heating cost is expected to be $1,450 and increasing at 4% every year. Choice M (Medium efficiency furnace) Initial cost is $2,700 including complete installation. Heating cost is expected to be $1,300 and increasing at 4% every year. Choice H (High efficiency furnace) Initial cost is $4,000 including complete installation. Heating cost is expected to be $1,150 and increasing at 4% every year. Which furnace will you choose? Why? Use net annual cost to determine the best alternative. Use interest rate of 8% per year. 3) Able Medical Clinic has borrowed $60 million from a bank under the following terms: Payments are to be made end of every quarter for next 10 years. Interest rate is 8.4% compounded quarterly (i.e., 2.1% per quarter). Prepare an amortization table. You may like to use Excel to do this, even though you could do it manually. The firm also plans to make additional $1 million payment at the end of each of the years 1 thru 5. a) How much interest did you pay over the term of the loan? b) What is the outstanding balance at the end of 3 years? Make sure you can compute this using the financial calculator. Verify that the number you obtained from the amortization table is the same as the one obtained using the calculator. c) Show the results of the amortization table showing all the 40 quarters. You may like to color code the display for quarter 12 to check and highlight the result for question b, above. 4) Today, you celebrated your 30th birthday. You just landed a new job at Citi Bank. Citi provides you a 401-k plan, and you decide to deposit $300 every month for 10 years. City matches your 401-k at 100% (matching funds are deposited annually) and pays interest at 7% compounded monthly. .At the end of 10 years you change the job to JP Morgan Chase, and you decide to roll-over your entire 401-k to Chase. At Chase, you contribute 6% of your salary to the 401-k; deposits are made annually. Your starting salary at Chase is $90,000 and you expect to earn 3% pay raise every year. Chase matches your 401-k at 75% (matching funds are deposited annually), and pays interest at 8% per year. You retire from Chase when you reach 65. You had a hardship withdrawal of $40,000 at age 55. The money was returned to account at age 60. On your 65th birthday, and you stop contributing to 401-k. a) Determine the total account balance (including company match) in your Chase account on your 65 th birthday. b) Beginning age 67, you start withdrawing $6,000 every month for next 23 years. Also, you withdrew $50,000 (a one-time withdrawal for the birthday party) on your 75 th birthday. Determine the balance in the account on your 90th birthday