Question: PROBLEM ONE (30 points) Given: A project, which requires an initial investment of 100 K$, has an operational phase of 5 years, and generates an

PROBLEM ONE (30 points) Given: A project, which requires an initial

PROBLEM ONE (30 points) Given: A project, which requires an initial investment of 100 K$, has an operational phase of 5 years, and generates an annuity of 40K$ each year. Required: If the Net Present Value is 64 K$, calculate the marginal cost of capital. PROBLEM TWO (30 points) Given: "Mom's Bakery" produces and sells apple, cherry, and pumpkin pies. The sale price for each type of pie is 10$. However, it costs 4$ to produce an apple pie, 5$ to produce a cherry pie, and 6$ to produce a pumpkin pie. Flour usage is half a kilogram per pie; and 1000 grams, 800 grams, and 1200 grams of sugar are used for apple, cherry, and pumpkin pies respectively. "Mom's Bakery" can buy 200 kilograms of flour, and 250 kilograms of sugar on a daily basis. Required: Define a) the objective function & b) the set of constraints, so that "Mom's Bakery" maximizes their daily profits

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