Corporate Finance Project

Part1

									A: Prepare the following
									a) Prepare an income statement for the year ended 2015 and 2016.
					2015		2016		El Cap Climbing Company Ltd							El Cap Climbing Company Ltd
	Cost of Goods Sold				235,942		297,915		Income Statement for Year ended 2015							Income Statement for Year ended 2016
	Cash				36,542		51,940
	Depreciation				61,056		69,011		Sales			482,155			Sales				587,715
	Interest Expense				13,877		15,905		Less:						Less:
	Selling and Admin Exp				40,952		58,569		Cost of goods sold			(235,942)			Cost of goods sold				(297,915)
	Accounts Payable				32,194		33,999
	Net Fixed Assets				269,369		328,185		Gross profit			246,213			Gross profit				289,800
	Sales				482,155		587,715
	Accounts Receivable				24,120		24,089		Less: Expenses:						Less: Expenses:
	Notes Payable				24,866		26,972		Selling and Admin Exp			(40,952)			Selling and Admin Exp				(58,569)
	Long-Term Debt				142,148		161,000		Interest expense			(13,877)			Interest expense				(15,905)
	Inventory				32,766		58,798		Depreciation			(61,056)			Depreciation				(69,011)
	New Equity				0		16,000
									Profit before tax			130,328			Profit before tax				146,315
									Less: Tax @ 30% * profit before tax			(39,098)			Less: Tax @ 30% * profit before tax				(43,895)
									Net profit			91,230			Net profit				102,421
									Less: Dividends @ 40%*net profit			(36,492)			Less: Dividends @ 40%*net profit				(40,968)
									Retained earnings			54,738			Retained earnings				61,452
									b) Prepare balance sheet for year 2015 and 2016.
									El Cap Climbing Company Ltd							El Cap Climbing Company Ltd
									Balance sheet as at 2015							Balance sheet as at 2016
									Non-Current Assets						Non-Current Assets
									Net Fixed Assets			269,369			Net Fixed Assets				328,185
									Current Assets						Current Assets
									Accounts Receivable			24,120			Accounts Receivable				24,089
									Cash			36,542			Cash				51,940
									Inventory			32,766			Inventory				58,798
									Total Assets			362,797			Total Assets				463,012
									Current Liabilities						Current Liabilities
									Accounts Payable			32,194			Accounts Payable				33,999
									Notes Payable			24,866			Notes Payable				26,972
									Non Current Liabilities						Non Current Liabilities
									Long-Term Debt			142,148			Long-Term Debt				161,000
									Capital						Capital
									Initial Capital			108,851			Initial Capital				108,851
									New Equity			0			New Equity				16,000
									Retained Earnings			54,738			Retained Earnings				116,190 DMM: Retained earnings for both 2015 & 2016
									Total Liabilities & Capital			362,797			Total Liabilities & Capital				463,012
											El Cap Climbing Company Ltd
											Operating cashflow for period ended 2016					2015	they asked for this for both years
									c) Operating Cashflow
										Net profit				146,315
										Non-cash expenses							Final grade 64
										Add back: depreciation expense				69,011			Please fix this project and return for grading.
										Less: corporate tax				(43,895)
										Less; dividends paid				(40,968)
										Cashflow from Operating activities				130,463
									d) Cashflow from assets
										Increase in net fixed assets				(58,816)		You need to check I think Chapter 3 on formula for what goes
										Decrease in accounts receivable				31		into finding each cash flow answer.
										Increase in Inventory				(26,032)
										Cashflow from assets				(84,817)
									e) Cashflow from creditors
										Increase in accounts payable				1,805
										Increase in notes payable				2,106
										Increase in Long-term debt				18,852
										Cashflow from creditors				22,763
									f) Cashflow from stockholders
										New equity				16,000
										Cashflow from stockholders				16,000		-11pts total
								B: Answer the following
									1.) Financial Position of the Firm in 2016
								The financial position of El Cap Climbing limited has improved in 2016 as compared to 2015.
								This assertion is evidenced by the increase in total sales from 482,155 in 2015 to 587,715 in 2016.
								This represents 22% increase in total sales. As a result, the company reported 18%
								increase in gross profit.
								There is a relatively less increase in other expenses attributable to increase in sales
								volume.
								However, the corporation has increased it's debt position by 22,763 and issuance of equity
								shares of 16,000.
									2.) Leah's plans to expand
								The company is in good financial position to expand as by the increase in
								sales volume.

Part2

	Amount Borrowed	500,000.00
	Period (in months)	360
	Interest rate (PM)	0.4167%
	Monthly payment	2,684.11
	Payment Number	Beginning balance	Payment Amount	5% Interest expense	Principle	Balance	Annual interest expense
	0	0	- 0	- 0	- 0	500,000.00		The principal gets off by about $2 as we continue down the
	1	500,000.00	2,684.11	2,083.33	600.77	499,399.23		chart. Some of this may be due to the last payment listed.
	2	499,399.23	2,684.11	2,080.83	603.28	498,795.95		total off -1pt.
	3	498,795.95	2,684.11	2,078.32	605.79	498,190.16
	4	498,190.16	2,684.11	2,075.79	608.32	497,581.84
	5	497,581.84	2,684.11	2,073.26	610.85	496,970.99
	6	496,970.99	2,684.11	2,070.71	613.40	496,357.59
	7	496,357.59	2,684.11	2,068.16	615.95	495,741.64
	8	495,741.64	2,684.11	2,065.59	618.52	495,123.12
	9	495,123.12	2,684.11	2,063.01	621.10	494,502.03
	10	494,502.03	2,684.11	2,060.43	623.68	493,878.35
	11	493,878.35	2,684.11	2,057.83	626.28	493,252.06
	12	493,252.06	2,684.11	2,055.22	628.89	492,623.17	24,832.47
	13	492,623.17	2,684.11	2,052.60	631.51	491,991.66
	14	491,991.66	2,684.11	2,049.97	634.14	491,357.52
	15	491,357.52	2,684.11	2,047.32	636.79	490,720.73
	16	490,720.73	2,684.11	2,044.67	639.44	490,081.30
	17	490,081.30	2,684.11	2,042.01	642.10	489,439.19
	18	489,439.19	2,684.11	2,039.33	644.78	488,794.41
	19	488,794.41	2,684.11	2,036.64	647.46	488,146.95
	20	488,146.95	2,684.11	2,033.95	650.16	487,496.79
	21	487,496.79	2,684.11	2,031.24	652.87	486,843.92
	22	486,843.92	2,684.11	2,028.52	655.59	486,188.32
	23	486,188.32	2,684.11	2,025.78	658.32	485,530.00
	24	485,530.00	2,684.11	2,023.04	661.07	484,868.93	24,455.06
	25	484,868.93	2,684.11	2,020.29	663.82	484,205.11
	26	484,205.11	2,684.11	2,017.52	666.59	483,538.53
	27	483,538.53	2,684.11	2,014.74	669.36	482,869.16
	28	482,869.16	2,684.11	2,011.95	672.15	482,197.01
	29	482,197.01	2,684.11	2,009.15	674.95	481,522.05
	30	481,522.05	2,684.11	2,006.34	677.77	480,844.29
	31	480,844.29	2,684.11	2,003.52	680.59	480,163.70
	32	480,163.70	2,684.11	2,000.68	683.43	479,480.27
	33	479,480.27	2,684.11	1,997.83	686.27	478,794.00
	34	478,794.00	2,684.11	1,994.97	689.13	478,104.87
	35	478,104.87	2,684.11	1,992.10	692.00	477,412.86
	36	477,412.86	2,684.11	1,989.22	694.89	476,717.97	24,058.34
	37	476,717.97	2,684.11	1,986.32	697.78	476,020.19
	38	476,020.19	2,684.11	1,983.42	700.69	475,319.50
	39	475,319.50	2,684.11	1,980.50	703.61	474,615.89
	40	474,615.89	2,684.11	1,977.57	706.54	473,909.35
	41	473,909.35	2,684.11	1,974.62	709.49	473,199.86
	42	473,199.86	2,684.11	1,971.67	712.44	472,487.42
	43	472,487.42	2,684.11	1,968.70	715.41	471,772.01
	44	471,772.01	2,684.11	1,965.72	718.39	471,053.62
	45	471,053.62	2,684.11	1,962.72	721.38	470,332.23
	46	470,332.23	2,684.11	1,959.72	724.39	469,607.84
	47	469,607.84	2,684.11	1,956.70	727.41	468,880.43
	48	468,880.43	2,684.11	1,953.67	730.44	468,149.99	23,641.32
	49	468,149.99	2,684.11	1,950.62	733.48	467,416.51
	50	467,416.51	2,684.11	1,947.57	736.54	466,679.97
	51	466,679.97	2,684.11	1,944.50	739.61	465,940.36
	52	465,940.36	2,684.11	1,941.42	742.69	465,197.67
	53	465,197.67	2,684.11	1,938.32	745.78	464,451.89
	54	464,451.89	2,684.11	1,935.22	748.89	463,703.00
	55	463,703.00	2,684.11	1,932.10	752.01	462,950.98
	56	462,950.98	2,684.11	1,928.96	755.15	462,195.84
	57	462,195.84	2,684.11	1,925.82	758.29	461,437.55
	58	461,437.55	2,684.11	1,922.66	761.45	460,676.10
	59	460,676.10	2,684.11	1,919.48	764.62	459,911.47
	60	459,911.47	2,684.11	1,916.30	767.81	459,143.66	23,202.96
	61	459,143.66	2,684.11	1,913.10	771.01	458,372.65
	62	458,372.65	2,684.11	1,909.89	774.22	457,598.43
	63	457,598.43	2,684.11	1,906.66	777.45	456,820.98
	64	456,820.98	2,684.11	1,903.42	780.69	456,040.29
	65	456,040.29	2,684.11	1,900.17	783.94	455,256.35
	66	455,256.35	2,684.11	1,896.90	787.21	454,469.15
	67	454,469.15	2,684.11	1,893.62	790.49	453,678.66
	68	453,678.66	2,684.11	1,890.33	793.78	452,884.88
	69	452,884.88	2,684.11	1,887.02	797.09	452,087.79
	70	452,087.79	2,684.11	1,883.70	800.41	451,287.38
	71	451,287.38	2,684.11	1,880.36	803.74	450,483.64
	72	450,483.64	2,684.11	1,877.02	807.09	449,676.55	22,742.18
	73	449,676.55	2,684.11	1,873.65	810.46	448,866.09
	74	448,866.09	2,684.11	1,870.28	813.83	448,052.26
	75	448,052.26	2,684.11	1,866.88	817.22	447,235.03
	76	447,235.03	2,684.11	1,863.48	820.63	446,414.40
	77	446,414.40	2,684.11	1,860.06	824.05	445,590.36
	78	445,590.36	2,684.11	1,856.63	827.48	444,762.88
	79	444,762.88	2,684.11	1,853.18	830.93	443,931.95
	80	443,931.95	2,684.11	1,849.72	834.39	443,097.55
	81	443,097.55	2,684.11	1,846.24	837.87	442,259.69
	82	442,259.69	2,684.11	1,842.75	841.36	441,418.33
	83	441,418.33	2,684.11	1,839.24	844.87	440,573.46
	84	440,573.46	2,684.11	1,835.72	848.39	439,725.08	22,257.83
	85	439,725.08	2,684.11	1,832.19	851.92	438,873.16
	86	438,873.16	2,684.11	1,828.64	855.47	438,017.69
	87	438,017.69	2,684.11	1,825.07	859.03	437,158.65
	88	437,158.65	2,684.11	1,821.49	862.61	436,296.04
	89	436,296.04	2,684.11	1,817.90	866.21	435,429.83
	90	435,429.83	2,684.11	1,814.29	869.82	434,560.01
	91	434,560.01	2,684.11	1,810.67	873.44	433,686.57
	92	433,686.57	2,684.11	1,807.03	877.08	432,809.49
	93	432,809.49	2,684.11	1,803.37	880.74	431,928.75
	94	431,928.75	2,684.11	1,799.70	884.40	431,044.35
	95	431,044.35	2,684.11	1,796.02	888.09	430,156.26
	96	430,156.26	2,684.11	1,792.32	891.79	429,264.47	21,748.69
	97	429,264.47	2,684.11	1,788.60	895.51	428,368.96
	98	428,368.96	2,684.11	1,784.87	899.24	427,469.73
	99	427,469.73	2,684.11	1,781.12	902.98	426,566.74
	100	426,566.74	2,684.11	1,777.36	906.75	425,659.99
	101	425,659.99	2,684.11	1,773.58	910.52	424,749.47
	102	424,749.47	2,684.11	1,769.79	914.32	423,835.15
	103	423,835.15	2,684.11	1,765.98	918.13	422,917.02
	104	422,917.02	2,684.11	1,762.15	921.95	421,995.07
	105	421,995.07	2,684.11	1,758.31	925.80	421,069.27
	106	421,069.27	2,684.11	1,754.46	929.65	420,139.62
	107	420,139.62	2,684.11	1,750.58	933.53	419,206.09
	108	419,206.09	2,684.11	1,746.69	937.42	418,268.68	21,213.51
	109	418,268.68	2,684.11	1,742.79	941.32	417,327.36
	110	417,327.36	2,684.11	1,738.86	945.24	416,382.11
	111	416,382.11	2,684.11	1,734.93	949.18	415,432.93
	112	415,432.93	2,684.11	1,730.97	953.14	414,479.79
	113	414,479.79	2,684.11	1,727.00	957.11	413,522.68
	114	413,522.68	2,684.11	1,723.01	961.10	412,561.59
	115	412,561.59	2,684.11	1,719.01	965.10	411,596.48
	116	411,596.48	2,684.11	1,714.99	969.12	410,627.36
	117	410,627.36	2,684.11	1,710.95	973.16	409,654.20
	118	409,654.20	2,684.11	1,706.89	977.22	408,676.99
	119	408,676.99	2,684.11	1,702.82	981.29	407,695.70
	120	407,695.70	2,684.11	1,698.73	985.38	406,710.32	20,650.94
	121	406,710.32	2,684.11	1,694.63	989.48	405,720.84
	122	405,720.84	2,684.11	1,690.50	993.60	404,727.24
	123	404,727.24	2,684.11	1,686.36	997.74	403,729.49
	124	403,729.49	2,684.11	1,682.21	1,001.90	402,727.59
	125	402,727.59	2,684.11	1,678.03	1,006.08	401,721.51
	126	401,721.51	2,684.11	1,673.84	1,010.27	400,711.24
	127	400,711.24	2,684.11	1,669.63	1,014.48	399,696.77
	128	399,696.77	2,684.11	1,665.40	1,018.70	398,678.06
	129	398,678.06	2,684.11	1,661.16	1,022.95	397,655.11
	130	397,655.11	2,684.11	1,656.90	1,027.21	396,627.90
	131	396,627.90	2,684.11	1,652.62	1,031.49	395,596.41
	132	395,596.41	2,684.11	1,648.32	1,035.79	394,560.62	20,059.59
	133	394,560.62	2,684.11	1,644.00	1,040.11	393,520.51
	134	393,520.51	2,684.11	1,639.67	1,044.44	392,476.07
	135	392,476.07	2,684.11	1,635.32	1,048.79	391,427.28
	136	391,427.28	2,684.11	1,630.95	1,053.16	390,374.12
	137	390,374.12	2,684.11	1,626.56	1,057.55	389,316.57
	138	389,316.57	2,684.11	1,622.15	1,061.96	388,254.62
	139	388,254.62	2,684.11	1,617.73	1,066.38	387,188.24
	140	387,188.24	2,684.11	1,613.28	1,070.82	386,117.41
	141	386,117.41	2,684.11	1,608.82	1,075.29	385,042.13
	142	385,042.13	2,684.11	1,604.34	1,079.77	383,962.36
	143	383,962.36	2,684.11	1,599.84	1,084.26	382,878.10
	144	382,878.10	2,684.11	1,595.33	1,088.78	381,789.31	19,437.99
	145	381,789.31	2,684.11	1,590.79	1,093.32	380,695.99
	146	380,695.99	2,684.11	1,586.23	1,097.87	379,598.12
	147	379,598.12	2,684.11	1,581.66	1,102.45	378,495.67
	148	378,495.67	2,684.11	1,577.07	1,107.04	377,388.63
	149	377,388.63	2,684.11	1,572.45	1,111.66	376,276.97
	150	376,276.97	2,684.11	1,567.82	1,116.29	375,160.68
	151	375,160.68	2,684.11	1,563.17	1,120.94	374,039.75
	152	374,039.75	2,684.11	1,558.50	1,125.61	372,914.14
	153	372,914.14	2,684.11	1,553.81	1,130.30	371,783.84
	154	371,783.84	2,684.11	1,549.10	1,135.01	370,648.83
	155	370,648.83	2,684.11	1,544.37	1,139.74	369,509.09
	156	369,509.09	2,684.11	1,539.62	1,144.49	368,364.60	18,784.59
	157	368,364.60	2,684.11	1,534.85	1,149.26	367,215.35
	158	367,215.35	2,684.11	1,530.06	1,154.04	366,061.30
	159	366,061.30	2,684.11	1,525.26	1,158.85	364,902.45
	160	364,902.45	2,684.11	1,520.43	1,163.68	363,738.77
	161	363,738.77	2,684.11	1,515.58	1,168.53	362,570.24
	162	362,570.24	2,684.11	1,510.71	1,173.40	361,396.84
	163	361,396.84	2,684.11	1,505.82	1,178.29	360,218.55
	164	360,218.55	2,684.11	1,500.91	1,183.20	359,035.36
	165	359,035.36	2,684.11	1,495.98	1,188.13	357,847.23
	166	357,847.23	2,684.11	1,491.03	1,193.08	356,654.15
	167	356,654.15	2,684.11	1,486.06	1,198.05	355,456.10
	168	355,456.10	2,684.11	1,481.07	1,203.04	354,253.06	18,097.75
	169	354,253.06	2,684.11	1,476.05	1,208.05	353,045.01
	170	353,045.01	2,684.11	1,471.02	1,213.09	351,831.92
	171	351,831.92	2,684.11	1,465.97	1,218.14	350,613.78
	172	350,613.78	2,684.11	1,460.89	1,223.22	349,390.56
	173	349,390.56	2,684.11	1,455.79	1,228.31	348,162.25
	174	348,162.25	2,684.11	1,450.68	1,233.43	346,928.81
	175	346,928.81	2,684.11	1,445.54	1,238.57	345,690.24
	176	345,690.24	2,684.11	1,440.38	1,243.73	344,446.51
	177	344,446.51	2,684.11	1,435.19	1,248.91	343,197.60
	178	343,197.60	2,684.11	1,429.99	1,254.12	341,943.48
	179	341,943.48	2,684.11	1,424.76	1,259.34	340,684.13
	180	340,684.13	2,684.11	1,419.52	1,264.59	339,419.54	17,375.78
	181	339,419.54	2,684.11	1,414.25	1,269.86	338,149.68
	182	338,149.68	2,684.11	1,408.96	1,275.15	336,874.53
	183	336,874.53	2,684.11	1,403.64	1,280.46	335,594.07
	184	335,594.07	2,684.11	1,398.31	1,285.80	334,308.27
	185	334,308.27	2,684.11	1,392.95	1,291.16	333,017.11
	186	333,017.11	2,684.11	1,387.57	1,296.54	331,720.57
	187	331,720.57	2,684.11	1,382.17	1,301.94	330,418.64
	188	330,418.64	2,684.11	1,376.74	1,307.36	329,111.27
	189	329,111.27	2,684.11	1,371.30	1,312.81	327,798.46
	190	327,798.46	2,684.11	1,365.83	1,318.28	326,480.18
	191	326,480.18	2,684.11	1,360.33	1,323.77	325,156.41
	192	325,156.41	2,684.11	1,354.82	1,329.29	323,827.12	16,616.87
	193	323,827.12	2,684.11	1,349.28	1,334.83	322,492.29
	194	322,492.29	2,684.11	1,343.72	1,340.39	321,151.90
	195	321,151.90	2,684.11	1,338.13	1,345.98	319,805.92
	196	319,805.92	2,684.11	1,332.52	1,351.58	318,454.34
	197	318,454.34	2,684.11	1,326.89	1,357.22	317,097.12
	198	317,097.12	2,684.11	1,321.24	1,362.87	315,734.25
	199	315,734.25	2,684.11	1,315.56	1,368.55	314,365.70
	200	314,365.70	2,684.11	1,309.86	1,374.25	312,991.45
	201	312,991.45	2,684.11	1,304.13	1,379.98	311,611.48
	202	311,611.48	2,684.11	1,298.38	1,385.73	310,225.75
	203	310,225.75	2,684.11	1,292.61	1,391.50	308,834.25
	204	308,834.25	2,684.11	1,286.81	1,397.30	307,436.95	15,819.13
	205	307,436.95	2,684.11	1,280.99	1,403.12	306,033.83
	206	306,033.83	2,684.11	1,275.14	1,408.97	304,624.86
	207	304,624.86	2,684.11	1,269.27	1,414.84	303,210.02
	208	303,210.02	2,684.11	1,263.38	1,420.73	301,789.29
	209	301,789.29	2,684.11	1,257.46	1,426.65	300,362.64
	210	300,362.64	2,684.11	1,251.51	1,432.60	298,930.04
	211	298,930.04	2,684.11	1,245.54	1,438.57	297,491.47
	212	297,491.47	2,684.11	1,239.55	1,444.56	296,046.91
	213	296,046.91	2,684.11	1,233.53	1,450.58	294,596.34
	214	294,596.34	2,684.11	1,227.48	1,456.62	293,139.71
	215	293,139.71	2,684.11	1,221.42	1,462.69	291,677.02
	216	291,677.02	2,684.11	1,215.32	1,468.79	290,208.23	14,980.58
	217	290,208.23	2,684.11	1,209.20	1,474.91	288,733.32
	218	288,733.32	2,684.11	1,203.06	1,481.05	287,252.27
	219	287,252.27	2,684.11	1,196.88	1,487.22	285,765.05
	220	285,765.05	2,684.11	1,190.69	1,493.42	284,271.63
	221	284,271.63	2,684.11	1,184.47	1,499.64	282,771.98
	222	282,771.98	2,684.11	1,178.22	1,505.89	281,266.09
	223	281,266.09	2,684.11	1,171.94	1,512.17	279,753.93
	224	279,753.93	2,684.11	1,165.64	1,518.47	278,235.46
	225	278,235.46	2,684.11	1,159.31	1,524.79	276,710.67
	226	276,710.67	2,684.11	1,152.96	1,531.15	275,179.52
	227	275,179.52	2,684.11	1,146.58	1,537.53	273,641.99
	228	273,641.99	2,684.11	1,140.17	1,543.93	272,098.06	14,099.13
	229	272,098.06	2,684.11	1,133.74	1,550.37	270,547.69
	230	270,547.69	2,684.11	1,127.28	1,556.83	268,990.87
	231	268,990.87	2,684.11	1,120.80	1,563.31	267,427.55
	232	267,427.55	2,684.11	1,114.28	1,569.83	265,857.73
	233	265,857.73	2,684.11	1,107.74	1,576.37	264,281.36
	234	264,281.36	2,684.11	1,101.17	1,582.94	262,698.42
	235	262,698.42	2,684.11	1,094.58	1,589.53	261,108.89
	236	261,108.89	2,684.11	1,087.95	1,596.15	259,512.74
	237	259,512.74	2,684.11	1,081.30	1,602.81	257,909.93
	238	257,909.93	2,684.11	1,074.62	1,609.48	256,300.45
	239	256,300.45	2,684.11	1,067.92	1,616.19	254,684.26
	240	254,684.26	2,684.11	1,061.18	1,622.92	253,061.34	13,172.57
	241	253,061.34	2,684.11	1,054.42	1,629.69	251,431.65
	242	251,431.65	2,684.11	1,047.63	1,636.48	249,795.18
	243	249,795.18	2,684.11	1,040.81	1,643.29	248,151.88
	244	248,151.88	2,684.11	1,033.97	1,650.14	246,501.74
	245	246,501.74	2,684.11	1,027.09	1,657.02	244,844.72
	246	244,844.72	2,684.11	1,020.19	1,663.92	243,180.80
	247	243,180.80	2,684.11	1,013.25	1,670.85	241,509.94
	248	241,509.94	2,684.11	1,006.29	1,677.82	239,832.13
	249	239,832.13	2,684.11	999.30	1,684.81	238,147.32
	250	238,147.32	2,684.11	992.28	1,691.83	236,455.49
	251	236,455.49	2,684.11	985.23	1,698.88	234,756.62
	252	234,756.62	2,684.11	978.15	1,705.96	233,050.66	12,198.62
	253	233,050.66	2,684.11	971.04	1,713.06	231,337.60
	254	231,337.60	2,684.11	963.91	1,720.20	229,617.39
	255	229,617.39	2,684.11	956.74	1,727.37	227,890.03
	256	227,890.03	2,684.11	949.54	1,734.57	226,155.46
	257	226,155.46	2,684.11	942.31	1,741.79	224,413.67
	258	224,413.67	2,684.11	935.06	1,749.05	222,664.61
	259	222,664.61	2,684.11	927.77	1,756.34	220,908.28
	260	220,908.28	2,684.11	920.45	1,763.66	219,144.62
	261	219,144.62	2,684.11	913.10	1,771.01	217,373.61
	262	217,373.61	2,684.11	905.72	1,778.38	215,595.23
	263	215,595.23	2,684.11	898.31	1,785.79	213,809.43
	264	213,809.43	2,684.11	890.87	1,793.24	212,016.20	11,174.84
	265	212,016.20	2,684.11	883.40	1,800.71	210,215.49
	266	210,215.49	2,684.11	875.90	1,808.21	208,407.28
	267	208,407.28	2,684.11	868.36	1,815.74	206,591.54
	268	206,591.54	2,684.11	860.80	1,823.31	204,768.23
	269	204,768.23	2,684.11	853.20	1,830.91	202,937.32
	270	202,937.32	2,684.11	845.57	1,838.54	201,098.78
	271	201,098.78	2,684.11	837.91	1,846.20	199,252.59
	272	199,252.59	2,684.11	830.22	1,853.89	197,398.70
	273	197,398.70	2,684.11	822.49	1,861.61	195,537.08
	274	195,537.08	2,684.11	814.74	1,869.37	193,667.71
	275	193,667.71	2,684.11	806.95	1,877.16	191,790.55
	276	191,790.55	2,684.11	799.13	1,884.98	189,905.57	10,098.67
	277	189,905.57	2,684.11	791.27	1,892.83	188,012.74
	278	188,012.74	2,684.11	783.39	1,900.72	186,112.02
	279	186,112.02	2,684.11	775.47	1,908.64	184,203.38
	280	184,203.38	2,684.11	767.51	1,916.59	182,286.78
	281	182,286.78	2,684.11	759.53	1,924.58	180,362.20
	282	180,362.20	2,684.11	751.51	1,932.60	178,429.60
	283	178,429.60	2,684.11	743.46	1,940.65	176,488.95
	284	176,488.95	2,684.11	735.37	1,948.74	174,540.21
	285	174,540.21	2,684.11	727.25	1,956.86	172,583.36
	286	172,583.36	2,684.11	719.10	1,965.01	170,618.35
	287	170,618.35	2,684.11	710.91	1,973.20	168,645.15
	288	168,645.15	2,684.11	702.69	1,981.42	166,663.73	8,967.45
	289	166,663.73	2,684.11	694.43	1,989.68	164,674.05
	290	164,674.05	2,684.11	686.14	1,997.97	162,676.09
	291	162,676.09	2,684.11	677.82	2,006.29	160,669.79
	292	160,669.79	2,684.11	669.46	2,014.65	158,655.14
	293	158,655.14	2,684.11	661.06	2,023.05	156,632.10
	294	156,632.10	2,684.11	652.63	2,031.47	154,600.62
	295	154,600.62	2,684.11	644.17	2,039.94	152,560.69
	296	152,560.69	2,684.11	635.67	2,048.44	150,512.25
	297	150,512.25	2,684.11	627.13	2,056.97	148,455.27
	298	148,455.27	2,684.11	618.56	2,065.54	146,389.73
	299	146,389.73	2,684.11	609.96	2,074.15	144,315.58
	300	144,315.58	2,684.11	601.31	2,082.79	142,232.78	7,778.35
	301	142,232.78	2,684.11	592.64	2,091.47	140,141.31
	302	140,141.31	2,684.11	583.92	2,100.19	138,041.13
	303	138,041.13	2,684.11	575.17	2,108.94	135,932.19
	304	135,932.19	2,684.11	566.38	2,117.72	133,814.47
	305	133,814.47	2,684.11	557.56	2,126.55	131,687.92
	306	131,687.92	2,684.11	548.70	2,135.41	129,552.51
	307	129,552.51	2,684.11	539.80	2,144.31	127,408.20
	308	127,408.20	2,684.11	530.87	2,153.24	125,254.96
	309	125,254.96	2,684.11	521.90	2,162.21	123,092.75
	310	123,092.75	2,684.11	512.89	2,171.22	120,921.53
	311	120,921.53	2,684.11	503.84	2,180.27	118,741.26
	312	118,741.26	2,684.11	494.76	2,189.35	116,551.91	6,528.42
	313	116,551.91	2,684.11	485.63	2,198.48	114,353.43
	314	114,353.43	2,684.11	476.47	2,207.64	112,145.80
	315	112,145.80	2,684.11	467.27	2,216.83	109,928.96
	316	109,928.96	2,684.11	458.04	2,226.07	107,702.89
	317	107,702.89	2,684.11	448.76	2,235.35	105,467.55
	318	105,467.55	2,684.11	439.45	2,244.66	103,222.89
	319	103,222.89	2,684.11	430.10	2,254.01	100,968.87
	320	100,968.87	2,684.11	420.70	2,263.40	98,705.47
	321	98,705.47	2,684.11	411.27	2,272.84	96,432.63
	322	96,432.63	2,684.11	401.80	2,282.31	94,150.33
	323	94,150.33	2,684.11	392.29	2,291.82	91,858.51
	324	91,858.51	2,684.11	382.74	2,301.36	89,557.15	5,214.54
	325	89,557.15	2,684.11	373.15	2,310.95	87,246.20
	326	87,246.20	2,684.11	363.53	2,320.58	84,925.61
	327	84,925.61	2,684.11	353.86	2,330.25	82,595.36
	328	82,595.36	2,684.11	344.15	2,339.96	80,255.40
	329	80,255.40	2,684.11	334.40	2,349.71	77,905.69
	330	77,905.69	2,684.11	324.61	2,359.50	75,546.19
	331	75,546.19	2,684.11	314.78	2,369.33	73,176.86
	332	73,176.86	2,684.11	304.90	2,379.20	70,797.65
	333	70,797.65	2,684.11	294.99	2,389.12	68,408.54
	334	68,408.54	2,684.11	285.04	2,399.07	66,009.46
	335	66,009.46	2,684.11	275.04	2,409.07	63,600.39
	336	63,600.39	2,684.11	265.00	2,419.11	61,181.29	3,833.44
	337	61,181.29	2,684.11	254.92	2,429.19	58,752.10
	338	58,752.10	2,684.11	244.80	2,439.31	56,312.79
	339	56,312.79	2,684.11	234.64	2,449.47	53,863.32
	340	53,863.32	2,684.11	224.43	2,459.68	51,403.64
	341	51,403.64	2,684.11	214.18	2,469.93	48,933.72
	342	48,933.72	2,684.11	203.89	2,480.22	46,453.50
	343	46,453.50	2,684.11	193.56	2,490.55	43,962.95
	344	43,962.95	2,684.11	183.18	2,500.93	41,462.02
	345	41,462.02	2,684.11	172.76	2,511.35	38,950.67
	346	38,950.67	2,684.11	162.29	2,521.81	36,428.86
	347	36,428.86	2,684.11	151.79	2,532.32	33,896.54
	348	33,896.54	2,684.11	141.24	2,542.87	31,353.66	2,381.67
	349	31,353.66	2,684.11	130.64	2,553.47	28,800.19
	350	28,800.19	2,684.11	120.00	2,564.11	26,236.09
	351	26,236.09	2,684.11	109.32	2,574.79	23,661.30
	352	23,661.30	2,684.11	98.59	2,585.52	21,075.78
	353	21,075.78	2,684.11	87.82	2,596.29	18,479.48
	354	18,479.48	2,684.11	77.00	2,607.11	15,872.37
	355	15,872.37	2,684.11	66.13	2,617.97	13,254.40
	356	13,254.40	2,684.11	55.23	2,628.88	10,625.52
	357	10,625.52	2,684.11	44.27	2,639.84	7,985.68
	358	7,985.68	2,684.11	33.27	2,650.83	5,334.85
	359	5,334.85	2,684.11	22.23	2,661.88	2,672.97
	360	2,672.97	2,684.11	11.14	2,672.97	0.00	855.63
			966,278.92	466,278.92	500,000.00		466,278.92		- 0
				This is the total amount El Cap Climbing will pay as interest during the period. the company is able to repay

Part 3

B: How can you describe relationship between time and amount paid towards principle and interest.
	Their relationship is inversely proportional. As Interest expense decreases, principle payment increases
c
	Yes. Firstly, the amount of capital available for investment will increase. This will result into debt to equity ratio of 2:1
	From the cashflow, ECCC has an upward trajectory in sales. Therefore, increased investment will yield more revenue.
Interest Expense	Principle Payment
2,083.33	600.77
2,080.83	603.28
2,078.32	605.79
2,075.79	608.32
2,073.26	610.85
2,070.71	613.40
2,068.16	615.95
2,065.59	618.52
2,063.01	621.10
2,060.43	623.68
2,057.83	626.28
2,055.22	628.89
2,052.60	631.51
2,049.97	634.14
2,047.32	636.79
2,044.67	639.44
2,042.01	642.10
2,039.33	644.78
2,036.64	647.46
2,033.95	650.16
2,031.24	652.87
2,028.52	655.59
2,025.78	658.32
2,023.04	661.07
2,020.29	663.82
2,017.52	666.59
2,014.74	669.36
2,011.95	672.15
2,009.15	674.95
2,006.34	677.77
2,003.52	680.59
2,000.68	683.43
1,997.83	686.27
1,994.97	689.13
1,992.10	692.00
1,989.22	694.89
1,986.32	697.78
1,983.42	700.69
1,980.50	703.61
1,977.57	706.54
1,974.62	709.49
1,971.67	712.44
1,968.70	715.41
1,965.72	718.39
1,962.72	721.38
1,959.72	724.39
1,956.70	727.41
1,953.67	730.44
1,950.62	733.48
1,947.57	736.54
1,944.50	739.61
1,941.42	742.69
1,938.32	745.78
1,935.22	748.89
1,932.10	752.01
1,928.96	755.15
1,925.82	758.29
1,922.66	761.45
1,919.48	764.62
1,916.30	767.81
1,913.10	771.01
1,909.89	774.22
1,906.66	777.45
1,903.42	780.69
1,900.17	783.94
1,896.90	787.21
1,893.62	790.49
1,890.33	793.78
1,887.02	797.09
1,883.70	800.41
1,880.36	803.74
1,877.02	807.09
1,873.65	810.46
1,870.28	813.83
1,866.88	817.22
1,863.48	820.63
1,860.06	824.05
1,856.63	827.48
1,853.18	830.93
1,849.72	834.39
1,846.24	837.87
1,842.75	841.36
1,839.24	844.87
1,835.72	848.39
1,832.19	851.92
1,828.64	855.47
1,825.07	859.03
1,821.49	862.61
1,817.90	866.21
1,814.29	869.82
1,810.67	873.44
1,807.03	877.08
1,803.37	880.74
1,799.70	884.40
1,796.02	888.09
1,792.32	891.79
1,788.60	895.51
1,784.87	899.24
1,781.12	902.98
1,777.36	906.75
1,773.58	910.52
1,769.79	914.32
1,765.98	918.13
1,762.15	921.95
1,758.31	925.80
1,754.46	929.65
1,750.58	933.53
1,746.69	937.42
1,742.79	941.32
1,738.86	945.24
1,734.93	949.18
1,730.97	953.14
1,727.00	957.11
1,723.01	961.10
1,719.01	965.10
1,714.99	969.12
1,710.95	973.16
1,706.89	977.22
1,702.82	981.29
1,698.73	985.38
1,694.63	989.48
1,690.50	993.60
1,686.36	997.74
1,682.21	1,001.90
1,678.03	1,006.08
1,673.84	1,010.27
1,669.63	1,014.48
1,665.40	1,018.70
1,661.16	1,022.95
1,656.90	1,027.21
1,652.62	1,031.49
1,648.32	1,035.79
1,644.00	1,040.11
1,639.67	1,044.44
1,635.32	1,048.79
1,630.95	1,053.16
1,626.56	1,057.55
1,622.15	1,061.96
1,617.73	1,066.38
1,613.28	1,070.82
1,608.82	1,075.29
1,604.34	1,079.77
1,599.84	1,084.26
1,595.33	1,088.78
1,590.79	1,093.32
1,586.23	1,097.87
1,581.66	1,102.45
1,577.07	1,107.04
1,572.45	1,111.66
1,567.82	1,116.29
1,563.17	1,120.94
1,558.50	1,125.61
1,553.81	1,130.30
1,549.10	1,135.01
1,544.37	1,139.74
1,539.62	1,144.49
1,534.85	1,149.26
1,530.06	1,154.04
1,525.26	1,158.85
1,520.43	1,163.68
1,515.58	1,168.53
1,510.71	1,173.40
1,505.82	1,178.29
1,500.91	1,183.20
1,495.98	1,188.13
1,491.03	1,193.08
1,486.06	1,198.05
1,481.07	1,203.04
1,476.05	1,208.05
1,471.02	1,213.09
1,465.97	1,218.14
1,460.89	1,223.22
1,455.79	1,228.31
1,450.68	1,233.43
1,445.54	1,238.57
1,440.38	1,243.73
1,435.19	1,248.91
1,429.99	1,254.12
1,424.76	1,259.34
1,419.52	1,264.59
1,414.25	1,269.86
1,408.96	1,275.15
1,403.64	1,280.46
1,398.31	1,285.80
1,392.95	1,291.16
1,387.57	1,296.54
1,382.17	1,301.94
1,376.74	1,307.36
1,371.30	1,312.81
1,365.83	1,318.28
1,360.33	1,323.77
1,354.82	1,329.29
1,349.28	1,334.83
1,343.72	1,340.39
1,338.13	1,345.98
1,332.52	1,351.58
1,326.89	1,357.22
1,321.24	1,362.87
1,315.56	1,368.55
1,309.86	1,374.25
1,304.13	1,379.98
1,298.38	1,385.73
1,292.61	1,391.50
1,286.81	1,397.30
1,280.99	1,403.12
1,275.14	1,408.97
1,269.27	1,414.84
1,263.38	1,420.73
1,257.46	1,426.65
1,251.51	1,432.60
1,245.54	1,438.57
1,239.55	1,444.56
1,233.53	1,450.58
1,227.48	1,456.62
1,221.42	1,462.69
1,215.32	1,468.79
1,209.20	1,474.91
1,203.06	1,481.05
1,196.88	1,487.22
1,190.69	1,493.42
1,184.47	1,499.64
1,178.22	1,505.89
1,171.94	1,512.17
1,165.64	1,518.47
1,159.31	1,524.79
1,152.96	1,531.15
1,146.58	1,537.53
1,140.17	1,543.93
1,133.74	1,550.37
1,127.28	1,556.83
1,120.80	1,563.31
1,114.28	1,569.83
1,107.74	1,576.37
1,101.17	1,582.94
1,094.58	1,589.53
1,087.95	1,596.15
1,081.30	1,602.81
1,074.62	1,609.48
1,067.92	1,616.19
1,061.18	1,622.92
1,054.42	1,629.69
1,047.63	1,636.48
1,040.81	1,643.29
1,033.97	1,650.14
1,027.09	1,657.02
1,020.19	1,663.92
1,013.25	1,670.85
1,006.29	1,677.82
999.30	1,684.81
992.28	1,691.83
985.23	1,698.88
978.15	1,705.96
971.04	1,713.06
963.91	1,720.20
956.74	1,727.37
949.54	1,734.57
942.31	1,741.79
935.06	1,749.05
927.77	1,756.34
920.45	1,763.66
913.10	1,771.01
905.72	1,778.38
898.31	1,785.79
890.87	1,793.24
883.40	1,800.71
875.90	1,808.21
868.36	1,815.74
860.80	1,823.31
853.20	1,830.91
845.57	1,838.54
837.91	1,846.20
830.22	1,853.89
822.49	1,861.61
814.74	1,869.37
806.95	1,877.16
799.13	1,884.98
791.27	1,892.83
783.39	1,900.72
775.47	1,908.64
767.51	1,916.59
759.53	1,924.58
751.51	1,932.60
743.46	1,940.65
735.37	1,948.74
727.25	1,956.86
719.10	1,965.01
710.91	1,973.20
702.69	1,981.42
694.43	1,989.68
686.14	1,997.97
677.82	2,006.29
669.46	2,014.65
661.06	2,023.05
652.63	2,031.47
644.17	2,039.94
635.67	2,048.44
627.13	2,056.97
618.56	2,065.54
609.96	2,074.15
601.31	2,082.79
592.64	2,091.47
583.92	2,100.19
575.17	2,108.94
566.38	2,117.72
557.56	2,126.55
548.70	2,135.41
539.80	2,144.31
530.87	2,153.24
521.90	2,162.21
512.89	2,171.22
503.84	2,180.27
494.76	2,189.35
485.63	2,198.48
476.47	2,207.64
467.27	2,216.83
458.04	2,226.07
448.76	2,235.35
439.45	2,244.66
430.10	2,254.01
420.70	2,263.40
411.27	2,272.84
401.80	2,282.31
392.29	2,291.82
382.74	2,301.36
373.15	2,310.95
363.53	2,320.58
353.86	2,330.25
344.15	2,339.96
334.40	2,349.71
324.61	2,359.50
314.78	2,369.33
304.90	2,379.20
294.99	2,389.12
285.04	2,399.07
275.04	2,409.07
265.00	2,419.11
254.92	2,429.19
244.80	2,439.31
234.64	2,449.47
224.43	2,459.68
214.18	2,469.93
203.89	2,480.22
193.56	2,490.55
183.18	2,500.93
172.76	2,511.35
162.29	2,521.81
151.79	2,532.32
141.24	2,542.87
130.64	2,553.47
120.00	2,564.11
109.32	2,574.79
98.59	2,585.52
87.82	2,596.29
77.00	2,607.11
66.13	2,617.97
55.23	2,628.88
44.27	2,639.84
33.27	2,650.83
22.23	2,661.88
11.14	2,672.97

Mortgage Principle and Interest

Interest Expense 2083.3333333333335 2080.8301050761361 2078.3164467012002 2075.7923147497022 2073.2576655817402 2070.7124553755775 2068.1566401268897 2065.5901756479989 2063.0130175671125 2060.4251213275561 2057.8264421870012 2055.2169352166943 2052.5965553006777 2049.9652571350107 2047.3229952269871 2044.6697238943466 2042.0053972644869 2039.3299692736693 2036.6433936662233 2033.9456239937465 2031.2366136143007 2028.5163156916074 2025.7846831942363 2023.0416688947926 2020.2872253691014 2017.5213049953863 2014.7438599534476 2011.954842223834 2009.1542035870136 2006.3418956225401 2003.5178697082144 2000.6820770192458 1997.8344685274062 1994.974995000184 1992.103606999932 1989.2202548830121 1986.3248887989387 1983.4174586895147 1980.4979142879681 1977.5662051180818 1974.6222804933209 1971.6660895159566 1968.6975810761869 1965.7167038512516 1962.7234063045455 1959.7176366847282 1956.6993430248285 1953.6684731413457 1950.6249746333485 1947.568794881568 1944.4998810474881 1941.4181800724332 1938.3236386766487 1935.2162033583818 1932.0958203929556 1928.9624358318401 1925.8159955017197 1922.6564450035576 1919.4837297116528 1916.2977947726984 1913.0985851048317 1909.8860453966822 1906.6601201064157 1903.4207534607729 1900.1678894541064 1896.901471847412 1893.6214441673567 1890.3277497053014 1887.0203315163205 1883.6991324182191 1880.3640949905421 1877.0151615735831 1873.6522742673869 1870.2753749307481 1866.8844051802064 1863.4793063890377 1860.0600196862392 1856.6264859555122 1853.1786458342406 1849.7164397124636 1846.2398077318462 1842.7486897846427 1839.2430255126592 1835.7227543062088 1832.187815303065 1828.6381473874083 1825.0736891887695 1821.49437908097 1817.9001551810545 1814.2909553482225 1810.6667171827539 1807.0273780249292 1803. 3728749539468 1799.7031447868353 1796.0181240773609 1792.3177491149304 1788.6019559234896 1784.8706802604181 1781.1238576154171 1777.3614232093951 1773.5833119933482 1769.7894586472341 1765.9797975788449 1762.1542629226706 1758.3127885387621 1754.4553080115875 1750.5817546488829 1746.6920614805001 1742.7861612572494 1738.8639864497352 1734.9254692471895 1730.9705415563001 1726.9991350000316 1723.0111809164455 1719.0066103575111 1714.9853540879146 1710.9473425838614 1706.8925060318745 1702.820774327588 1698.7320770745332 1694.6263435829244 1690.5035028684335 1686.3634836509659 1682.2062143534254 1678.0316231004783 1673.839637717311 1669.6301857283802 1665.4031943561622 1661.1585905198933 1656.8963008343067 1652.6162516083634 1648.3183688439788 1644.0025782347423 1639.6688051646343 1635.3169747067338 1630.9470116219259 1626.5588403575975 1622.1523850463348 1617.7275695046083 1613.2843172314579 1608.8225514071696 1604.3421948919465 1599.8431702245769 1595.3253996210931 1590.7888049734281 1586.2333078480647 1581.6588294846786 1577.0652907947785 1572.4526123603373 1567.8207144324192 1563.1695169298014 1558.4989394375893 1553.8089012058265 1549.0993211480977 1544.3701178401286 1539.6212095183764 1534.8525140786167 1530.0639490745248 1525.2554317162492 1520.4268788689806 1515.5782070515152 1510.7093324348102 1505.8201708405356 1500.9106377396181 1495.9806482507804 1491.0301171390722 1486.0589588143989 1481.0670873300394 1476.0544163811614 1471.0208593033301 1465.9663290710077 1460.8907382960506 1455.7939992261979 1450.6760237435544 1445.5367233630664 1440.3760092309928 1435.1937921233691 1429.9899824444635 1424.7644902252293 1419.5172251217482 1414.2480964136694 1408.95701300264 1403.6438834107314 1398.3086157788566 1392.9511178651821 1387.5712970435343 1382.1690603017962 1376.7443142403008 1371.2969650702159 1365.8269186119223 1360.3340802933858 1354.8183551485222 1349.2796478155547 1343.7178625353665 1338.1329031498442 1332.5246731002158 1326.8930754253806 1321.2380127602335 1315.5593873339815 1309.8571009684533 1304.1310550764024 1298.3811506598011 1292.6072883081306 1286.8093681966616 1280.9872900847283 1275.1409533139952 1269.2702568067173 1263.3750990639924 1257.4553781640061 1251.5109917602699 1245.5418370798513 1239.5478109215978 1233.5288096543516 1227.4847292151583 1221.4154651074687 1215.3209123993302 1209.2009657215744 1203.0555192659949 1196.8844667835169 1190.687701582362 1184.4651165262021 1178.2166040323086 1171.9420560696901 1165.6413641572278 1159.3144193617966 1152.9611122963845 1146.5813331181998 1140.1749715267727 1133.7419167620478 1127.2820576024703 1120.795282363061 1114.2814788934875 1107.7405345761242 1101.1723363241049 1094.5767705793692 1087.9537233106969 1081.3030800117385 1074.6247256990346 1067.9185449100275 1061.1844217010666 1054.4222396454015 1047.6318818311711 1040.8132308593813 1033.9661688418757 1027.0905773992974 1020.1863376590416 1013.2533302532014 1006.2914353165036 999.3005324842361 992.28050089016745 985.23121916445689 978.1525654315559 971.04441730810117 963.90665190079869 956.73914580429903 949.54177509906401 942.31441534922385 935.05694160042606 927.76922837767495 920.45114968316238 913.1025789940893 905.72338926047848 898.31345290297759 890.87264181065382 883.40082733877864 875.89788030660395 868.36367099512859 860.7980691448555 853.20094395353954 845.57216407392639 837.91159761148151 830.21911212210978 822.49457460986571 814.73785152465393 806.94880875992033 799.12731165033381 791.27322496945726 783.38641292741045 775.46673916852183 767.51406676897102 759.5282582344222 751.50917549764597 743.45667991613323 735.37063226969758 727.25089275806829 719.09732099847406 710.90977602321482 702.68811627722539 694.4321996156275 686.14188330127 308 677.8170240022755 669.45747778953205 661.06310013423547 652.63374590537524 644.16926936722803 635.66952417683865 627.13436338148915 618.56363941615916 609.95720410097363 601.31490863864144 592.63660361188283 583.92213898084606 575.1713640805134 566.38412761809593 557.56027767041849 548.69966168129235 539.80212645887821 530.8675181730373 521.895682352672 512.88646388305528 503.83970700314848 494.75525530290867 485.63295172058457 476.47263854000079 467.27415738783122 458.03734923086097 448.76205437323665 439.44811245370556 430.09536244284311 420.7036426402687 411.27279067185026 401.80264348689678 392.29303735533927 382.7438078649003 373.1547899182512 363.52581773015766 353.85672482461376 344.14734403196343 334.39750748601034 324.60704662111584 314.77579216928427 304.90357415723673 294.99022190347227 285.03556401531722 275.03942838596146 265.00164219148337 254.92203188786166 244.80042320797486 234.63664115858853 224.43051001732974 214.18185332964907 203.89049390576972 193.5562538176242 183.17895439577808 172.75841622634093 162.29445914786444 151.78690224822765 141.23556386150904 130.64026156484576 120.00081217527971 109.31703174659047 98.588735566115048 87.815738151554299 76.997853247766216 66.134893823545667 55.226672068390883 44.272999389256285 33.273686407291954 22.228542954569441 11.137378070793918 Principle Payment 600.77478172736164 603.27800998455905 605.79166835949491 608.31580031099293 610.85044947895494 613.39565968511761 615.95147493380546 618.51793941269625 621.09509749358267 623.68299373313903 626.28167287369388 628.89117984400082 631.51155976001746 634.14285792568444 636.78511983370799 639.43839116634854 642.10271779620825 644.77814578702578 647.46472139447178 650.16249106694863 652.8715014463944 655.59179936908777 658.3234318664588 661.06644616590256 663.82088969159372 666.58681006530878 669.36425510724757 672.15327283686111 674.9539114736815 677.76621943815508 680.59024535248068 683.42603804144937 686.27364653328891 689.13312006051115 692.0045080607631 694.88786017768302 697.78322626175645 700.69065637118047 703.61020077272701 706.5419099426133 709.48583456737424 712.4420255447385 715.41053398450822 718.3914112094435 721.38470875614962 724.39047837596695 727.4087720358666 730.43964191934947 733.4831404273466 736.53932017912712 739.60823401320704 742.68993498826194 745.78447638404646 748.89191170231334 752.01229466773952 755.14567922885499 758.2921195589754 761.45167005713756 764.62438534904231 767.81032028799677 771.0095299558634 774.22206966401291 777.44799495427947 780.68736159992227 783.94022560658868 787.20664321328309 790.48667089333844 793.78036535539377 797.08778354437459 800.40898264247608 803.74402007015306 807.09295348711203 810.4558407933082 813.83274012994707 817.22370988048874 820.62880867165745 824.0480953744559 827.48162910518295 830.92946922645456 834.3916753482315 837.86830732884891 841.35942527605243 844.86508954803594 848.38536075448633 851.92029975763012 855.46996767328687 859.03442587192558 862.61373597972511 866.20795987964061 869.81715971247263 873.4413978779412 877.08073703576588 880.73524010674828 884.40497027385982 888.08999098333425 891.79036594576473 895.50615913720549 899.23743480027701 902.98425744527799 906.74669185130006 910.52480306734697 914.31865641346099 918.12831748185022 921.95385213802456 925.79532652193302 929.65280704910765 933.52636041181222 937.41605358019501 941.32195380344569 945.24412861095993 949.18264581350559 953.13757350439505 957.1089800606635 961.09693414424964 965.10150470318399 969.1227609727805 973.1607724768337 977.21560902882061 981.28734073310716 985.37603798616192 989.48177147777074 993.60461219226158 997.74463140972921 1001.9019007072698 1006.0764919602168 1010.2684773433841 1014.4779293323149 1018.7049207045329 1022.9495245408018 1027.2118142263885 1031.4918634523317 1035.7897462167164 1040.1055368259529 1044.4393098960609 1048.7911403539613 1053.1611034387693 1057.5492747030976 1061.9557300143604 1066.3805455560869 1070.8237978292373 1075.2855636535255 1079.7659201687486 1084.2649448361183 1088.782715439602 1093.319310087267 1097.8748072126305 1102.4492855760166 1107.0428242659166 1111.6555027003578 1116.2874006282759 1120.9385981308938 1125.6091756231058 1130.2992138548686 1135.0087939125974 1139.7379972205665 114 4.4869055423187 1149.2556009820785 1154.0441659861704 1158.8526833444459 1163.6812361917146 1168.52990800918 1173.3987826258849 1178.2879442201595 1183.197477321077 1188.1274668099147 1193.0779979216229 1198.0491562462962 1203.0410277306557 1208.0536986795337 1213.087255757365 1218.1417859896874 1223.2173767646445 1228.3141158344972 1233.4320913171407 1238.5713916976288 1243.7321058297023 1248.914322937326 1254.1181326162316 1259.3436248354658 1264.5908899389469 1269.8600186470258 1275.1511020580551 1280.4642316499637 1285.7994992818385 1291.156997195513 1296.5368180171608 1301.9390547588989 1307.3638008203943 1312.8111499904792 1318.2811964487728 1323.7740347673093 1329.2897599121729 1334.8284672451405 1340.3902525253286 1345.9752119108509 1351.5834419604794 1357.2150396353145 1362.8701023004617 1368.5487277267137 1374.2510140922418 1379.9770599842927 1385.7269644008941 1391.5008267525645 1397.2987468640335 1403.1208249759668 1408.9671617467 1414.8378582539779 1420.7330159967028 1426.652736896689 1432.5971233004252 1438.5662779808438 1444.5603041390973 1450.5793054063436 1456.6233858455369 1462.6926499532265 1468.787202661365 1474.9071493391207 1481.0525957947002 1487.2236482771782 1493.4204134783331 1499.642998534493 1505.8915110283865 1512.166058991005 1518.4667509034673 1524.7936956988985 1531.1470027643106 1537.5267819424953 1543.9331435339225 1550.3661982986473 1556.8260574582248 1563.3128326976341 1569.8266361672077 1576.3675804845709 1582.9357787365902 1589.531344481326 1596.1543917499982 1602.8050350489566 1609.4833893616606 1616.1895701506676 1622.9236933596285 1629.6858754152936 1636.476233229524 1643.2948842013138 1650.1419462188194 1657.0175376613977 1663.9217774016536 1670.8547848074936 1677.8166797441916 1684.807582576459 1691.8276141705278 1698.8768958962382 1705.9555496291391 1713.063697752594 1720.2014631598963 1727.3689692563962 1734.566339961631 1741.7936997114712 1749.0511734602692 1756.3388866830201 1763.6569653775327 1771.0055360666058 1778.3847258002165 1785.7946621577175 1793.2354732500412 1800.7072877219166 1808.2102347540913 1815.7444440655665 1823.3100459158395 1830.9071711071556 1838.5359509867687 1846.1965174492136 1853.8890029385852 1861.6135404508295 1869.3702635360412 1877.1593063007749 1884.9808034103612 1892.8348900912379 1900.7217021332847 1908.6413758921733 1916.594048291724 1924.579856826273 1932.598939563049 1940.6514351445619 1948.7374827909975 1956.8572223026267 1965.0107940622211 1973.1983390374803 1981.4199987834697 1989.6759154450676 1997.966231759422 2006.2910910584196 2014.6506372711631 2023.0450149264598 2031.4743691553199 2039.9388456934671 2048.4385908838567 2056.9737516792061 2065.5444756445359 2074.1509109597214 2082.7932064220536 2091.4715114488122 2100.1859760798488 2108.9367509801818 2117.7239874425991 2126.5478373902765 2135.408453379403 2144.3059886018168 2153.2405968876578 2162.2124327080232 2171.2216511776396 2180.2684080575468 2189.3528597577865 2198.4751633401106 2207.6354765206943 2216.833957672864 2226.0707658298343 2235.3460606874587 2244.6600026069896 2254.0127526178521 2263.4044724204264 2272.835324388845 2282.3054715737985 2291.8150777053561 2301.3643071957949 2310.9533251424441 2320.5822973305376 2330.2513902360815 2339.9607710287319 2349.7106075746847 2359.5010684395793 2369.332322891411 2379.2045409034586 2389.1178931572231 2399.0725510453781 2409.0686866747337 2419.1064728692118 2429.1860831728336 2439.3076918527204 2449.4714739021065 2459.6776050433655 2469.926261731046 2480.2176211549254 2490.551861243071 2500.9291606649172 2511.3496988343541 2521.8136559128307 2532.3212128124674 2542.8725511991861 2553.4678534958493 2564.1073028854153 2574.7910833141045 2585.5193794945799 2596.2923769091408 2607.1102618129289 2617.9732212371496 2628.8814429923041 2639.8351156714389 2650.8344286534034 2661.8795721061256 2672.9707369899011

Payment Month

Dollars

Part 4

	Equipment	10,500,000
	Pretax salvage value	1,100,000
	R&D	200,000
	Marketing study	150,000
			Year 1	Year 2	Year 3	Year 4	Year 5
	Sales (units)		75,000	85,000	80,000	70,000	65,000
	Sales of old product		45,000	25,000
	Lost sales		10,000	10,000
	Depreciation rate		14.29%	24.49%	17.49%	12.49%	8.93%
	Price	240
	VC	140
	FC	2,100,000
	Price of old product	150
	Product price after reduction	120
	VC of old product	95
	Tax rate	30%
	NWC percentage	22%
	Required return	10%
	Sales		Year 1	Year 2	Year 3	Year 4	Year 5
	New		18,000,000	20,400,000	19,200,000	16,800,000	15,600,000
	Lost sales		1,500,000	1,500,000
	Lost revenue		1,050,000	450,000
	Net sales		15,450,000	18,450,000	19,200,000	16,800,000	15,600,000
	VC
	New		10,500,000	11,900,000	11,200,000	9,800,000	9,100,000
	Lost sales		950,000	950,000
	Total VC		9,550,000	10,950,000	11,200,000	9,800,000	9,100,000
	Sales		15,450,000	18,450,000	19,200,000	16,800,000	15,600,000
	VC		9,550,000	10,950,000	11,200,000	9,800,000	9,100,000
	Fixed costs		2,100,000	2,100,000	2,100,000	2,100,000	2,100,000
	Dep		1,500,450	2,571,450	1,836,450	1,311,450	937,650
	EBT		2,299,550	2,828,550	4,063,550	3,588,550	3,462,350
	Tax		689,865	848,565	1,219,065	1,076,565	1,038,705
	NI		1,609,685	1,979,985	2,844,485	2,511,985	2,423,645
	+Dep		1,500,450	2,571,450	1,836,450	1,311,450	937,650
	OCF		3,110,135	4,551,435	4,680,935	3,823,435	3,361,295
	NWC
	Beg		0	3,399,000	4,059,000	4,224,000	3,696,000
	End		3,399,000	4,059,000	4,224,000	3,696,000	- 0
	NWC CF		(3,399,000)	(660,000)	(165,000)	528,000	3,696,000
	Net CF		(288,865)	3,891,435	4,515,935	4,351,435	7,057,295
	BV of equipment						2,342,550
	Salvage						6,100,000
	Taxes on sale of equipment						(1,127,235)
	Salvage CF						6,100,000
	Cash flow on sale of equipment						4,972,765
	Year	0	1	2	3	4	5
	CF	(10,500,000)	(288,865)	3,891,435	4,515,935	4,351,435	12,030,060
1. ) Payback Period
		This metric seeks to calculate the number of years the company will take to repay back initial investment.
		The project is viable if it can repay before end of its life. Short period is an indicator of viable project.
	Years	CF	Cumulative CF	Months
	1	(288,865)	(288,865)
	2	3,891,435	3,602,570
	3	4,515,935	8,118,505
	4	4,351,435	12,469,940	7.81
	5	12,030,060
					They do this as a year amount in decimal form.
			Payback period is 3 years and 8 Months			total of -2pts.
2.) Profitability Index
		This index measures profit margin of the investment. It is obtained by taking the formula:-
		Net Present Value/Initial Investment
		If the index is more than 1, the project is profitable.
	Years	CF	PVIF, 5 Years, 10%	Present value
	1	(288,865)	0.9091	(262,607)
	2	3,891,435	0.8264	3,215,882
	3	4,515,935	0.7513	3,392,822
	4	4,351,435	0.683	2,972,030
	5	12,030,060	0.6209	7,469,464
			Net cashflow	16,787,591
		Profitability index	1.599
3.) IRR of the project
	This is the rate at which net present value equals zero.
	The IRR should be higher than required return for the project to be viable.
	Initial Investment	Cashflows
	Year 0	Year 1	Year 2	Year 3	Year 4	Year 5
	(10,500,000)	(288,865)	3,891,435	4,515,935	4,351,435	12,030,060
	IRR	24.35%	Your final year cashflow is wrong throw off this answer. -1pt.
4.) NPV of the project
	Net present value is the compounded future proceeds of a project.
	This is obtained by taking Present value of all cashflows - Initial investment outlay.
	Net present value should be positive for project to be viable.
	NPV Calculator
	Interest Rate	10.00%
	Initial Investement	10,500,000
	Net Cash Flows
	1	(288,865)	should be discounted CF not these
	2	3,891,435
	3	4,515,935
	4	4,351,435
	5	12,030,060
	NPV	6,288,155.67	total off -5pts
5. ) Yes, Leah should accept the project because:-
	i) The payback period is 3 years and 8 months. This is shorter than 5 year investment period.
	ii) The profitability index is more than 1.
	iii) IRR is higher than required return.
	iv) The NPV of the project is very high.
6.) Break-even Price that Leah can set
	At breakeven point, NPV will be zero. Break-even point in units is achieved by taking:-
	Fixed cost/(selling price-variable cost)
	Therefore, Leah can set selling price at	207.8794081528	Not sure how you got this but it is about a $1 higher per unit.
	NPV Calculator
	Interest Rate	10.00%
	Initial Investement	10,500,000		total off step -9pts.
	Net Cash Flows
	1	(1,445,206)
	2	2,050,925
	3	2,681,849
	4	2,706,861
	5	10,073,916

Part 5

	Date	Risk-Free	Monthly Risk-Free	S&P 500	S&P 500 Return	Stock Price	Return	Mutual Fund Price (VINIX)	Mutual Fund Return	S&P Risk Premium	ELY Risk Premium	Mutual Fund Risk Premium
	2012-03-01	0.00060	0.00005	1408.469971		6.593309		115.374893
	2012-04-01	0.00070	0.00006	1397.910034	-0.0074974527	5.978844	-0.0931952378	114.650108	-0.0062819993	-0.00756	-0.09325	-0.00634
	2012-05-01	0.00070	0.00006	1310.329956	-0.0626507256	5.393764	-0.097858382	107.760185	-0.060095216	-0.06271	-0.09792	-0.06015
	2012-06-01	0.00050	0.00004	1362.160034	0.0395549821	5.774846	0.0706523311	112.195206	0.0411563974	0.03951	0.07061	0.04111
	2012-07-01	0.00070	0.00006	1379.319946	0.0125975741	5.36445	-0.0710661375	113.751228	0.0138688813	0.01254	-0.07112	0.01381
	2012-08-01	0.00090	0.00008	1406.579956	0.0197633697	5.62767	0.049067472	116.305611	0.0224558719	0.01969	0.04899	0.02238
	2012-09-01	0.00080	0.00007	1440.670044	0.0242361537	6.009373	0.0678261163	119.322975	0.0259434087	0.02417	0.06776	0.02588
	2012-10-01	0.00110	0.00009	1412.160034	-0.0197894099	5.34384	-0.110749158	117.107437	-0.0185675726	-0.01988	-0.11084	-0.01866
	2012-11-01	0.00120	0.00010	1416.180054	0.002846717	6.607512	0.2364726489	117.78566	0.0057914597	0.00275	0.23637	0.00569
	2012-12-01	0.00040	0.00003	1426.189941	0.0070682305	6.37223	-0.0356082592	118.858086	0.0091048944	0.00703	-0.03564	0.00907
	2013-01-01	0.00050	0.00004	1498.109985	0.0504280965	6.43105	0.0092306775	125.023178	0.0518693528	0.05039	0.00919	0.05183
	2013-02-01	0.00080	0.00007	1514.680054	0.0110606492	6.597119	0.0258229994	126.716988	0.0135479679	0.01099	0.02576	0.01348
	2013-03-01	0.00080	0.00007	1569.189941	0.0359877235	6.498948	-0.0148808897	131.464584	0.0374661367	0.03592	-0.01495	0.03740
	2013-04-01	0.00050	0.00004	1597.569946	0.0180857679	6.577485	0.0120845712	133.989746	0.019207926	0.01804	0.01204	0.01917
	2013-05-01	0.00020	0.00002	1630.73999	0.0207628117	6.734931	0.0239371127	137.118759	0.0233526303	0.02075	0.02392	0.02334
	2013-06-01	0.00030	0.00003	1606.280029	-0.0149993016	6.469466	-0.0394161425	135.282166	-0.0133941775	-0.01502	-0.03944	-0.01342
	2013-07-01	0.00020	0.00002	1685.72998	0.0494620798	7.059387	0.091185424	142.152969	0.0507886827	0.04945	0.09117	0.05077
	2013-08-01	0.00040	0.00003	1632.969971	-0.031298019	6.813516	-0.0348289448	138.032333	-0.0289873369	-0.03133	-0.03486	-0.02902
	2013-09-01	0.00020	0.00002	1681.550049	0.0297495232	7.010438	0.0289016713	142.362732	0.0313723524	0.02973	0.02889	0.03136
	2013-10-01	0.00110	0.00009	1756.540039	0.0445957526	8.300281	0.1839889319	148.90773	0.0459740966	0.04450	0.18390	0.04588
	2013-11-01	0.00050	0.00004	1805.810059	0.0280494716	7.985061	-0.0379770275	153.437439	0.0304195692	0.02801	-0.03802	0.03038
	2013-12-01	0.00020	0.00002	1848.359985	0.0235627916	8.310378	0.0407407032	157.319748	0.0253022276	0.02355	0.04072	0.02529
	2014-01-01	0.00020	0.00002	1782.589966	-0.0355829057	8.054068	-0.030842159	151.873779	-0.0346171989	-0.03560	-0.03086	-0.03463
	2014-02-01	0.00050	0.00004	1859.449951	0.04311703	8.310794	0.0318753206	158.81601	0.0457105305	0.04308	0.03183	0.04567
	2014-03-01	0.00050	0.00004	1872.339966	0.0069321656	10.087448	0.2137766861	160.145233	0.0083695781	0.00689	0.21374	0.00833
	2014-04-01	0.00020	0.00002	1883.949951	0.006200789	8.597033	-0.1477494605	161.321808	0.0073469249	0.00618	-0.14777	0.00733
	2014-05-01	0.00030	0.00003	1923.569946	0.02103028	7.925623	-0.078097874	165.103668	0.0234429557	0.02101	-0.07812	0.02342
	2014-06-01	0.00020	0.00002	1960.22998	0.0190583317	8.222093	0.0374065231	168.514465	0.0206585174	0.01904	0.03739	0.02064
	2014-07-01	0.00020	0.00002	1930.670044	-0.0150798306	7.510565	-0.0865385492	166.188309	-0.0138038951	-0.01510	-0.08656	-0.01382
	2014-08-01	0.00030	0.00003	2003.369995	0.0376552955	7.530369	0.0026368189	172.829086	0.0399593512	0.03763	0.00261	0.03993
	2014-09-01	0.00010	0.00001	1972.290039	-0.0155138372	7.164241	-0.0486201938	170.404526	-0.0140286572	-0.01552	-0.04863	-0.01404
	2014-10-01	0.00020	0.00002	2018.050049	0.0232014608	7.757963	0.0828729798	174.560974	0.0243916526	0.02318	0.08286	0.02437
	2014-11-01	0.00040	0.00003	2067.560059	0.0245335888	7.342161	-0.0535968011	179.264053	0.0269423279	0.02450	-0.05363	0.02691
	2014-12-01	0.00030	0.00003	2058.899902	-0.0041885879	7.629506	0.0391362979	178.809174	-0.0025374803	-0.00421	0.03911	-0.00256
	2015-01-01	0.00020	0.00002	1994.98999	-0.0310408058	8.085295	0.059740303	173.444992	-0.0299994787	-0.03106	0.05972	-0.03002
	2015-02-01	0.00020	0.00002	2104.5	0.054892511	8.907696	0.1017156455	183.405701	0.0574286342	0.05488	0.10170	0.05741
	2015-03-01	0.00020	0.00002	2067.889893	-0.0173961069	9.45347	0.0612699401	180.495102	-0.0158697302	-0.01741	0.06125	-0.01589
	2015-04-01	0.00020	0.00002	2085.51001	0.0085208197	9.602266	0.0157398289	182.215561	0.0095318875	0.00850	0.01572	0.00952
	2015-05-01	0.00010	0.00001	2107.389893	0.0104913824	9.373827	-0.0237901137	184.557297	0.01285146	0.01048	-0.02380	0.01284
	2015-06-01	0.00010	0.00001	2063.110107	-0.0210116724	8.877332	-0.0529660938	180.991425	-0.0193212193	-0.02102	-0.05297	-0.01933
	2015-07-01	0.00030	0.00003	2103.840088	0.0197420297	9.09579	0.0246085198	184.784073	0.0209548491	0.01972	0.02458	0.02093
	2015-08-01	0.00040	0.00003	1972.180054	-0.0625808182	8.797664	-0.0327762624	173.636536	-0.0603273692	-0.06261	-0.03281	-0.06036
	2015-09-01	0.00010	0.00001	1920.030029	-0.0264428316	8.30062	-0.0564972702	169.30838	-0.0249265281	-0.02645	-0.05651	-0.02493
	2015-10-01	0.00010	0.00001	2079.360107	0.0829831178	9.891157	0.1916166503	183.594376	0.0843785523	0.08297	0.19161	0.08437
	2015-11-01	0.00070	0.00006	2080.409912	0.0005048693	10.030698	0.0141076519	184.144592	0.002996911	0.00045	0.01405	0.00294
	2015-12-01	0.00170	0.00014	2043.939941	-0.0175301852	9.373926	-0.0654762012	181.219559	-0.0158844361	-0.01767	-0.06562	-0.01603
	2016-01-01	0.00230	0.00019	1940.23999	-0.050735322	8.667398	-0.0753716212	172.217819	-0.049673115	-0.05093	-0.07556	-0.04986
	2016-02-01	0.00260	0.00022	1932.22998	-0.0041283604	8.857076	0.0218840764	171.984756	-0.0013533036	-0.00435	0.02167	-0.00157
	2016-03-01	0.00250	0.00021	2059.73999	0.0659911146	9.086223	0.0258716308	183.653198	0.0678457921	0.06578	0.02566	0.06764
	2016-04-01	0.00190	0.00016	2065.300049	0.0026993985	9.305408	0.0241227846	184.365891	0.0038806457	0.00254	0.02396	0.00372
	2016-05-01	0.00230	0.00019	2096.949951	0.0153246024	10.033625	0.0782573961	187.665817	0.017898788	0.01513	0.07807	0.01771
	2016-06-01	0.00220	0.00018	2098.860107	0.0009109211	10.18323	0.0149103639	188.153809	0.0026003244	0.00073	0.01473	0.00242
	2016-07-01	0.00260	0.00022	2173.600098	0.0356098011	10.671946	0.0479922382	195.080307	0.0368129566	0.03539	0.04778	0.03660
	2016-08-01	0.00260	0.00022	2170.949951	-0.0012192431	11.399827	0.0682050865	195.355011	0.0014081585	-0.00144	0.06799	0.00119
	2016-09-01	0.00190	0.00016	2168.27002	-0.0012344508	11.589491	0.0166374455	195.385056	0.0001537969	-0.00139	0.01648	-0.00000
	2016-10-01	0.00240	0.00020	2126.149902	-0.0194256793	10.191964	-0.1205857099	191.814651	-0.0182736852	-0.01963	-0.12079	-0.01847
	2016-11-01	0.00300	0.00025	2198.810059	0.0341745222	12.138294	0.1909671188	198.91597	0.0370217758	0.03392	0.19072	0.03677
	2016-12-01	0.00420	0.00035	2238.830078	0.0182007622	10.949441	-0.0979423468	202.846924	0.0197618824	0.01785	-0.09829	0.01941
	2017-01-01	0.00500	0.00042	2278.870117	0.0178843582	11.319085	0.0337591663	206.688309	0.0189373589	0.01747	0.03334	0.01852
	2017-02-01	0.00480	0.00040	2363.639893	0.0371981603	10.11	-0.1068182631	214.88855	0.0396744307	0.03680	-0.10722	0.03927
	2017-03-01	0.00660	0.00055	2362.719971	-0.0003891972	11.07	0.0949554896	215.130005	0.001123629	-0.00094	0.09441	0.00057

Risk Premium Analysis

S & P Risk Premium ELY Risk Premium 0 -0.007555786 -0.093253571 -6.3403326587844703E-3 -0.062709059 -0.097916715 -6.0153549292484419E-2 0.039513315 0.070610664 4.1114730754143174E-2 0.012539241 -0.071124471 1.3810548016195974E-2 0.01968837 0.048992472 2.238087186100533E-2 0.024169487 0.06775945 2.5876742030958425E-2 -0.019881077 -0.110840825 -1.8659239256941046E-2 0.002746717 0.236372649 5.6914596832990921E-3 0.007034897 -0.035641593 9.0715610994864786E-3 0.05038643 0.009189011 5.1827686168108081E-2 0.010993983 0.025756333 1.3481301214936849E-2 0.035921057 -0.014947556 3.7399470075788116E-2 0.018044101 0.012042905 1.9166259325020911E-2 0.020746145 0.023920446 2.3335963615952231E-2 -0.015024302 -0.039441142 -1.341917752460859E-2 0.049445413 0.091168757 5.0772016004189034E-2 -0.031331352 -0.034862278 -2.9020670207036043E-2 0.029732857 0.028885005 3.1355685780640012E-2 0.044504086 0.183897265 4.5882429981043027E-2 0.028007805 -0.038018694 3.037790255247344E-2 0.023546125 0.040724037 2.528556090766082E-2 -0.035599572 -0.030858826 -3.4633865519540438E-2 0.043075363 0.031833654 4.566886378638798E-2 0.006890499 0.213735019 8.3279114382106972E-3 0.006184122 -0.147766127 7.3302582336830929E-3 0.02100528 -0.078122874 2.3417955709992999E-2 0.019041665 0.037389856 2.0641850744345679E-2 -0.015096497 -0.086555216 -1.3820561780359116E-2 0.037630295 0.002611819 3.9934351171928624E-2 -0.015522171 -0.048628527 -1.4036990523593459E-2 0.023184794 0.082856313 2.4374985935330436E-2 0.024500255 -0.053630134 2.6908994566372375E-2 -0.004213588 0.039111298 -2.5624802833447984E-3 -0.031057472 0.059723636 -3.0016145328762601E-2 0.054875844 0.101698979 5.7411967536850607E-2 -0.017412774 0.061253273 -1.5886396910221041E-2 0.008504153 0.015723162 9.5152207969610453E-3 0.010483049 -0.023798447 1.2843126701959685E-2 -0.021020006 -0.052974427 -1.9329552585910556E-2 0.01971703 0.02458352 2.0929849104039121E-2 -0.062614152 -0.032809596 -6.0360702564987836E-2 -0.026451165 -0.056505604 -2.4934861469093923E-2 0.082974784 0.191608317 8.4370218986404247E-2 0.000446536 0.014049319 2.9385776395821853E-3 -0.017671852 -0.065617868 -1.6026102740683897E-2 -0 .050926989 -0.075563288 -4.9864781697257887E-2 -0.004345027 0.02166741 -1.5699702989695886E-3 0.065782781 0.025663297 6.7637458766985126E-2 0.002541065 0.023964451 3.7223124041833181E-3 0.015132936 0.078065729 1.7707121347218174E-2 0.000727588 0.014727031 2.4169910507285297E-3 0.035393134 0.047775572 3.6596289907600769E-2 -0.00143591 0.06798842 1.1914918718576018E-3 -0.001392784 0.016479112 -4.5364082060776354E-6 -0.019625679 -0.12078571 -1.847368516863436E-2 0.033924522 0.190717119 3.6771775776658425E-2 0.017850762 -0.098292347 1.9411882366709994E-2 0.017467692 0.0333425 1.8520692225696928E-2 0.03679816 -0.107218263 3.9274430739089386E-2 -0.000939197 0.09440549 5.7362896952863225E-4

Part 6

1.)	Jensen's alpha measures excess return.								where are the regression analysis they ask you to run
	If an asset has a positive alpha, the stock will plot above SML.								how can you answer these questions without them
									for both ELY and the mutual fund
2.)	Alpha on both ELY and Mutual fund is less than zero.								R squared would only show up there.
	is it significantly, how do you know where do it show this
3.)	On mutual fund, Beta is 1.00
	This indicates that the risk of the stock is neither more nor less volatile than the wider market.
	What is ELY's
4.)	Mutual Fund Risk Analysis has the highest R-Squared.								Total off step -15pts
	Yes, this was expected. Why would you expect this?
Breakdown
	Thet R-squared measures the degree of relationship between independent and dependent variables.
	Mutual fund is a combination of many stocks which include S&P. The relationship between mutual stock and S&P stock is high.
	ELY is an independent stock. It does not have any similar characteristics to S&P. As a result, there is no close relationship between the two.
	So as expected R-squared to be high in Mutual fund regression analysis and low in ELY regression analysis.
				This is not to correct graph they ask you to use

Mutual Fund, S&P

Scatter Plot

0 0 -7.5557860426037609E-3 -6.3403326587844703E-3 -6.3403326587844703E-3 -6.0153549292484419E-2 4.1114730754143174E-2 1.3810548016195974E-2 2.238087186100533E-2 2.5876742030958425E-2 -1.8659239256941046E-2 5.6914596832990921E-3 9.0715610994864786E-3 5.1827686168108081E-2 1.3481301214936849E-2 3.7399470075788116E-2 1.9166259325020911E-2 2.3335963615952231E-2 -1.341917752460859E-2 5.0772016004189034E-2 -2.9020670207036043E-2 3.1355685780640012E-2 4.5882429981043027E-2 3.037790255247344E-2 2.528556090766082E-2 -3.4633865519540438E-2 4.566886378638798E-2 8. 3279114382106972E-3 7.3302582336830929E-3 2.3417955709992999E-2 2.0641850744345679E-2 -1.3820561780359116E-2 3.9934351171928624E-2 -1.4036990523593459E-2 2.4374985935330436E-2 2.6908994566372375E-2 -2.5624802833447984E-3 -3.0016145328762601E-2 5.7411967536850607E-2 -1.5886396910221041E-2 9.5152207969610453E-3 1.2843126701959685E-2 -1.9329552585910556E-2 2.0929849104039121E-2 -6.0360702564987836E-2 -2.4934861469093923E-2 8.4370218986404247E-2 2.9385776395821853E-3 -1.6026102740683897E-2 -4.9864781697257887E-2 -1.5699702989695886E-3 6.7637458766985126E-2 3.7223124041833181E-3 1.7707121347218174E-2 2.4169910507285297E-3 3.6596289907600769E-2 1.1914918718576018E-3 -4.5364082060776354E-6 -1.847368516863436E-2 3.6771775776658425E-2 1.9411882366709994E-2 1.8520692225696928E-2 3.9274430739089386E-2 5.7362896952863225E-4 -9.3919718808453982E-4 -7.5557860426037609E-3 -6.2709058966510925E-2 3.9513315467924748E-2 1.2539240792821125E-2 1.9688369680148136E-2 2.416948702981038E-2 -1.988107654489411E-2 2.7467170173433274E-3 7.0348971305312308E-3 5.0386429852911828E-2 1.0993982528592435E-2 3.5921056850289457E-2 1.8044101192585742E-2 2.074614505437954E-2 -1.5024301636062793E-2 4.9445413148558416E-2 -3.1331352367200242E-2 2.973285651057243E-2 4. 4504085951339437E-2 2.8007804968519859E-2 2.3546124883826153E-2 -3.5599572341829311E-2 4.3075363309928665E-2 6.8904989412690472E-3 6.1841222983860886E-3 2.100528001299596E-2 1.9041664992253935E-2 -1.5096497248586501E-2 3.7630295489735198E-2 -1.5522170556397083E-2 2.3184794120105559E-2 2.4500255427031433E-2 -4.2135878779204061E-3 -3.1057472457136841E-2 5.487584434788733E-2 -1.741277358042289E-2 8.5041530634580725E-3 1.0483049059983523E-2 -2.1020005709233854E-2 1.9717029696721344E-2 -6.2614151500536161E-2 -2.6451164906560427E-2 8.2974784427060799E-2 4.4653592739068499E-4 -1.7671851842981083E-2 -5.0926988639613056E-2 -4.3450270969657891E-3 6.5782781244031807E-2 2.5410651475399298E-3 1.5132935690905888E-2 7.2758778764477788E-4 3.5393134458587619E-2 -1.4359098027147005E-3 -1.3927841776587278E-3 -1.9625679279557544E-2 3.3924522187570479E-2 1.7850762196895176E-2 1.7467691504797912E-2 3.6798160337279152E-2 -9.3919718808453982E-4

ELY, S&P Scatter Plot

S & P Risk Premium 0 -0.007555786 -9.3253571111511183E-2 -0.062709059 -9.7916715321557074E-2 0.039513315 7.0610664432728884E-2 0.012539241 -7.1124470854576391E-2 0.01968837 4.8992471968235418E-2 0.024169487 6.7759449647900441E-2 -0.019881077 -0.1108408246903074 0.002746717 0.23637264888170298 0.007034897 -3.5641592538916279E-2 0.05038643 9.1890108198647152E-3 0.010993983 2.5756332688026618E-2 0.035921057 -1.4947556339870952E-2 0.018044101 1.2042904559322502E-2 0.020746145 2.3920446074753389E-2 -0.015024302 -3.9441142496485837E-2 0.049445413 9.1168757292590621E-2 -0.031331352 -3.4862278112816336E-2 0.029732857 2.8885004658387801E-2 0.044504086 0.18389726526597441 0.028007805 -3.8018694191397466E-2 0.023546125 4.0724036503916511E-2 -0.035599572 -3.0858825711658475E-2 0.043075363 3.1833653978751333E-2 0.006890499 0.21373501941170331 0.006184122 -0.14776612718433182 0.02100528 -7.8122873999087808E-2 0.019041665 3.7389856454607129E-2 -0.015096497 -8.6555215914406819E-2 0.037630295 2.6118189343944964E-3 -0.015522171 -4.8628527111354125E-2 0.023184794 8.2856313178651289E-2 0.024500255 -5.3630134452390003E-2 -0.004213588 3.91112978828713E-2 -0.031057472 5.9723636309699069E-2 0.054875844 0.1016989788354454 -0.017412774 6.1253273394152631E-2 0.008504153 1.572316220040551E-2 0.010483049 -2.3798447041910021E-2 -0.021020006 -5.2974427117654425E-2 0.01971703 2.4583519766975041E-2 -0.062614152 -3.2809 595758037505E-2 -0.026451165 -5.650560351778218E-2 0.082974784 0.19160831698917263 0.000446536 1.4049318582413173E-2 -0.017671852 -6.5617867824352638E-2 -0.050926989 -7.55632879062626E-2 -0.004345027 2.1667409730886426E-2 0.065782781 2.566329743962166E-2 0.002541065 2.3964451238429819E-2 0.015132936 7.8065729462552039E-2 0.000727588 1.4727030568048203E-2 0.035393134 4.7775571552444579E-2 -0.00143591 6.7988419828336213E-2 -0.001392784 1.6479112129654878E-2 -0.019625679 -0.12078570993324902 0.033924522 0.19071711880065506 0.017850762 -9.8292346758119389E-2 0.017467692 3.334249966885669E-2 0.03679816 -0.10721826313699384 -0.000939197 9.4405489614243415E-2