## Assignments

**Study and Homework Assignments**

- For the progress of your textbook studies refer to Fall 2015 or Spring 2016 guides below this section.
**Assignment 1**: (Due: Noon, Monday June 5)**Assignment 2**: (Due: Noon, Wednesday June 7) .**Assignment 3**: (Due: 5:00pm, Friday June 9) .**Assignment 4**: (Due: 5:00pm, Friday June 16)**Assignment 5**: (Due: 1:00 PM Wednesday June 21)**Assignment 6:**Solve Test 2 problems. (Due: 5:00 PM Friday June 23)**Assignment 7:**(Due: 9:00 AM Friday June 30)**Assignment 8:**(Due: 12:00 Noon Friday June 30)

Please Note: This page is frequently updated.

**Study and Homework Assignments**

- Chapter 1 - Read the chapter and make yourself familiar with the materials
- Chapter 1 - There are 17 examples with the solutions in the chapter. Try to solve them during your study of the chapter materials and then compare your solution with the one in the book.
- Chapter 1 - Self practice: Problems 1-22 through 1-32 (Solution is posted in Fall 2015 archive)
- Chapter 2 - Read the chapter and make yourself familiar with the materials
**Assignment 1**: (Due: 5:00 PM Tuesday Feb. 9)**Assignment 2**: (Due: 5:00 PM Thursday Feb. 11)- Chapter 2 - Self practice: Problems 23, 29, 31, 33, 35, 39, 42, 44, 46, 49, and 51 (Solution is posted in Fall 2015 archive)
- Chapter 3 - Read the chapter and make yourself familiar with the materials.
**Assignment 3**: (Due: 5:00 PM Thursday Feb. 18)- Chapter 3 - Assignment: Problems 8, 9, 13, 18, 29, 32, 44, 50, 56, and 62 (Solution is posted in Fall 2015 archive)
**Assignment 4**: (Due: 5:00 PM Wednesday Feb. 24)- Chapter 4 - Read the chapter and make yourself familiar with the materials. Make sure to work out the exmplaes of each chapter.
- Chapter 4 - Assignment: Problems 6, 16, 18, 22, 26, 32, 41, 47, 53, 56, 57, and 69 (Solution is posted in Fall 2015 archive)
**Assignment 5**: (Due: 5:00 PM Tuessday March 1)- Chapter 5 - Read the chapter and make yourself familiar with the materials. Make sure to work out the exmplaes of the chapter.
- Chapter 5: Problems 11, 12, 15, 18, 20, 21, 25, 30, 34, 37, and 47 (Solution is posted in Fall 2015 archive)
**Assignment 6:**Solve Test 1 problems. (Due: 5:00 PM Friday March 11)

Please note that this homework requires a mandatory presentation.- Chapter 6 - Read the chapter and make yourself familiar with the materials. Make sure to work out the exmplaes of the chapter.
- Chapter 6: Problems 5, 10, 15, 18, 19, 22, 28, 31, 32, and 33. (Solution is posted in Fall 2015 archive)
**Assignment 7:**(Due: 5:00 PM Thursday March 31)- Chapter 7 - Read the chapter and make yourself familiar with the materials. Make sure to work out the exmplaes of the chapter.
- Chapter 7: Problems 2, 9, 15, 18, 31, 33, 37, 38, 39, 40, 41, 43, 55, 56 and 57 (Solution is posted in Fall 2015 archive)
**Assignment 8:**(Due: 5:00PM Wednesday April 13th)- Chapter 8 - Read the chapter and make yourself familiar with the materials. Make sure to work out the exmplaes of the chapter.
- Chapter 8: Problems 12, 18, 21, 25, and 27 (Solution is posted in Fall 2015 archive)
**Assignment 9:**(Due: 5:00PM Wednesday April 20th)- Chapter 9 - Read the chapter and make yourself familiar with the materials. Make sure to work out the exmplaes of the chapter.
**Assignment 10:**(Due: 5:00PM Monday April 25th) Chapter 9: Problems 42, 43, 44, and 45- Chapter 14 - Read the chapter and make yourself familiar with the materials. Make sure to work out the exmplaes of the chapter.
- Chapter 14: Problems 21-23,31-34, 44-45, 52, and 53 (Solution will be posted on Wednesday May 4th)
**Assignment 11: Last Assignment**(Due: 3:00PM Tuesday May 10th)- Chapters 16 and 17 - Read the chapters and make yourself familiar with the materials. Make sure to work out the exmplaes and problems at the end of each chapter.

Please Note: This page is frequently updated.

**Study and Homework Assignments**

- Submission Practice
- Chapter 1 - Read the chapter and make yourself familiar with the materials
- Chapter 1 - There are 17 examples with the solutions in the chapter. Try to solve them during your study of the chapter materials and then compare your solution with the one in the book.
- Chapter 1 - Assignment: Problems 1-22 through 1-32 (Solution will be posted on Friday 08/04, 1:00pm)
- Chapter 2 - Read the chapter and make yourself familiar with the materials
**Assignment 1**: For the cash flow diagram presented in this image, (1) calculate present worth of the project by equivalent present worth for each individual payment using appropriate formulas or values from economic tables, Rate of return is 12% compounded annually. (2) Develop an EXCEL sheet that perform the same calculations for diferent values of interest rate from 1 to 20 percent. Use 20 different tabs. Project life is 30 years. Each horizontal grid line represents one year and each vertical grid line represents $100. Due Date: Wednesday September 9th, 5:00pm. Digital submission (full report in PDF and EXCEL file).- Chapter 2 - Assignment: Problems 2.23, 2.29, 2.31, 2.33, 2.35, 2.39, 2.42, 2.44, 2.46, 2.49, and 2.51(Solution will be posted on Monday 09/21, 5:00pm)
- Chapter 3 - Read the chapter and make yourself familiar with the materials.
**Assignment 2**: Produce a cash flow diagram based on the following set of payments. Find the equivalent annual payments for the problem. If you are finding the equivalent present worth first, try to limit the use of (P/F, i, n) and instead use (P/G, i, n) and (P/A, i, n) factors. Use 12% interest rate, compounded yearly. Due Date: Wednesday September 23rd, 5:00pm.

- Chapter 3 - Assignment: Problems 8, 9, 13, 18, 29, 32, 44, 50, 56, and 62 (Solution will be posted on Tuesday 09/29, 5:00pm)
**Assignment 3:**For the cash flow diagram presented below find the present worth. Nominal interest rate is 16% compounded annually except for the following periods:

- between 9 and 7 years ago, continuous compounding

- last two years monthly compounding

- between years 6 to 8 from now, weekly compunding

^{3}equation where X is the year and Y is in $1000) eight years ago to be followed another investment 7 years from now (using same equation), followed by yearly reception of fund that their values follw an arithmatic series beginning 8 years from now with $4000 and ending in year 12 with $2000.

**Submission:**

This assignment should be presented and submitted no later than 4:00pm Tuesday October 6th, 2015. You need to bring your complete report and present/explain your solution in person. Make sure that you check my schedule for possible availabilty outside my office hours.- Chapter 4 - Read the chapter and make yourself familiar with the materials. Make sure to work out the exmplaes of each chapter.
- Chapter 4 - Assignment: Problems 6, 16, 18, 22, 26, 32, 41, 47, 53, 56, 57, and 69 (Solution will be posted on Friday 10/09, 1:00pm)
**Assignment 4:**For a project with annual compounding interest rate of 10%, the following information is provided:

$1000 initial investment

investment of $4,920 in year 2, decreasing by $750 each year through year 8

withdrawal of $2,400 annually between years 11 through 14

withdrawal of $9,852 in year 17, decreasing by 10% annually through year 24

two equal withdrawals of $20,670 in years 27 and 30

(1) use manual calculations to find out present worth of the cash flow

(2) set up an EXCEL sheet and use proper functions to find the present worth of the project and compre it with your manual calculations

(3) use proper functions to find the annual equivalent worth of the projec

(4) Use proper EXCEL analysis tool to find out what annual withdrawals between years 11 and 14 should be so the present worth of investment and withdrawals is equal.

(5) Use proper EXCEL analysis tool for the original problem to find out what the rate of return should be so the present worth of investment and withdrawals is equal.

**Submission:**

Reqular folder submission along with a print out from the EXCEL page with explanation. Deadline: 5:00pm Friday 10/09.- Chapter 5 - Read the chapter and make yourself familiar with the materials. Make sure to work out the exmplaes of the chapter.
- Chapter 5: Problems 11, 12, 15, 18, 20, 21, 25, 30, 34, 37, and 47 (Solution will be posted on Wednesday 10/14, 4:00pm)
**Assignment 5:**A company has 3 competing alternatives for an investment it plans to undertake. The company uses 12% as the internal rate of return for this project.

*Alternative 1:*Invest twice, $5,341 now and $6255 two years from now; withdraw $983 a year from now and 3 years from now then $2,000 four years from now increasing each year by 18%. Project life is 8 years and can be renewed with the same cashflow structure. Interest is compounded annually.

*Alternative 2:*Invest $10,506 now; withdrawals of $300 at the end of first month and gradually increasing by $50 each month for 24 month and then gradually decreasing by a specific fixed amount so that the last withdrawal is $500. Project life is 3 years and can be renewed with the same cashflow structure. Interest is compounded monthly.

*Alternative 3:*Invest gradually from year 0 to year 5 beginning with $4,274 and gradually decreasing it by $500 every year. Withdraw $2,905 every 6 months. Project life is 6 years and can be renewed at 5% increase rate for all expenses and 4% for all withdrawals with the same cashflow structure. Interest is compounded every 3 months.

Use present worth calculations to recommend the most appropriate alternative of the three to the company. Will the company implement the alternative you recommend? Why or why not?

Submission deadline: 5:00pm Thursday October 15th, Optional presentation.- Chapter 6 - Read the chapter and make yourself familiar with the materials. Make sure to work out the exmplaes of the chapter.
- Chapter 6: Problems 5, 10, 15, 18, 19, 22, 28, 31, 32, and 33 (Solution will be posted on Monday 10/25, 4:00pm)
**Assignment 6:**You have bought a car worth $20,000 with full financing and 0.75% monthly interest rate to repay in 7 years through monthly installments. This payment is only to recover the price of the car and other charges are added too but they are not considered here. Another financing entity has advertised a fancy design for payment structurethat has attracted many customers. You have already paid for 1 full year to the current financing company and have to decide whether you want to change it to the new institution or not. They are offering 5 year loans with equal monthly payments with 1% monthly interest rate. However they allow customers no payment for the last month of the year and the first month of the year. Answer the following questions based on the fact that the only calculation tools that you have are tables for 0.75 and 1 percent interest rates with n values up to 12 and a simple calculator to perform addition, subtraction, multiplcation and division. No formula sheet or knowlege of them should be used.

(1) How much is the monthly payment value of the current loan?

(2) How much is the monthly payment value of the new loan?

Due: 5:00pm Monday 10-26-2015- Chapter 7 - Read the chapter and make yourself familiar with the materials. Make sure to work out the exmplaes of the chapter.
- Chapter 7: Problems 2, 9, 15, 18, 31, 33, 37, 38, 39, 40, 41, 43, 55, 56 and 57 (Solution will be posted on Thursday 11/5, 4:00pm)
**Assignment 7:**Case Study of Chapter 7 (after the chapter problems)

Due: 12:00pm Friday 11-6-2015- Chapter 8 - Read the chapter and make yourself familiar with the materials. Make sure to work out the exmplaes of the chapter.
- Chapter 8: Problems 12, 18, 21, 25, and 27 (Solution will be posted on Tuesday 11/17, 9:00pm)
**Assignment 8:**Case Study of Chapter 8 (Use Excel if you wish)

Due: 4:00pm Thursday 11-19-2015**Assignment 9:**CLICK HERE

Due: 4:00pm Wednesday 11-25-2015

Please Note: This page is frequently updated.