final exam

Test3final8.xlsx

Prob9

9. (15 pts) Provide monthly values for a 5-period moving average trend and plot both the
	time series and trend on the same axes.
	period	Series
Jan 2007	1	1.71
Feb	2	1.92
Mar	3	3.58
Apr	4	4.4
May	5	3.79
Jun	6	5.52
Jul	7	5.5
Aug	8	5
Sep	9	5.48
Oct	10	4.81
Nov	11	2.42
Dec	12	1.46
Jan 2008	13	1.71
Feb	14	2.46
Mar	15	2.42
Apr	16	1.79
May	17	3.63
Jun	18	3.54
Jul	19	4.88
Aug	20	4.96
Sep	21	3.63
Oct	22	5.46
Nov	23	3.08
Dec	24	1.75
Jan 2009	25	2.13
Feb	26	2.58
Mar	27	2.75
Apr	28	3.15
May	29	3.46
Jun	30	3.33
Jul	31	4.67
Aug	32	4.13
Sep	33	4.73
Oct	34	3.42
Nov	35	3.08
Dec	36	1.79
Jan 2010	37	1.96
Feb	38	1.63
Mar	39	2.75
Apr	40	3.06
May	41	4.31
Jun	42	3.31
Jul	43	3.71
Aug	44	5.25
Sep	45	3.67
Oct	46	3.1
Nov	47	2.25
Dec	48	2.29

10. (13pts)	A carpet discount store stocks carpet rolls in its warehouse. The store wants to determine the
	optimum order size for its Plush Carpet, given annual demand of 10,000 yards. Ordering cost is
	$55, the carpet's cost is $9.50 per yard and holding cost is $0.80 per yard.
	Determine the optimum order size (in yards) of Plush Carpet.

11. (10pts)	A project costs $25,000 to set up with projected returns over 3 years as indicated below.
	Using a discount rate of 8%, calculate the net present value of this project.
	Year	Cash Flow
	0
	1	12000
	2	10000
	3	5000
	a) Calculate the net present value of this project.
	b) Based on your NPV, should the project be implemented?