HW 8

[Chase Morgan]

Has anyone attempted this yet? I'm getting a cash flow PV of $301,980
but am not too confident about it....

[jennife...@gmail.com]

No but ill let u know
Sent via BlackBerry by AT&T

[Darren Ng]

I'm working on it, but keep getting the "cells do not converge error".

Do you have it set up where you still produce software, pay out rent, and borrow money, during the last period where we collect the $7k revenue for the custom software?

[Chase Morgan]

Nope. All of my expenses end in period 4. However, I do add in a row titled "working capital @ period 5" to account for that $7K accrued in period 4, but does not include his ability to borrow up to $10K since that ability expired at the end of the 4th period.

[Subramaniam Narayanan]

I am also getting "cells don't converge" error.

Wanted to check what should be the working capital equation at the end of 4 months. Here is what I tried:

1.1 b3 + 1500 X24 <= 6000 X23 + 118 X14

I am missing the equation for wc @tc=5 - meaning what is the transfer row that links X14 revenue billed (7k) in month 4 to received @ end of month 5.

[Subramaniam Narayanan]

I am getting

132871.5

Anyone else getting that?

[Subramaniam Narayanan]

Hi Chase,

Here is my spreadsheet. Pls review to see why our answers are different...

Thanks

- Narayanan

[Manuel Severino]

Hey Subramaniam,

Can you borrow again in the 5th period? I interpreted the case as saying that you can only borrow in the 4 periods.

I got a pretty low value $ 43, 934. Anyone else get that?


Manny

[Chase Morgan]

Hey Subramaniam,

I made a small correction on how I accounted for the variable cost per unit for for X1 and have now arrived at $129,515. This is very close to your answer. Mine is attached.

I gave it a quick comparison and the only difference I found is in how we calculate the objective coefficients. The values match closely and only differ around 5 or 6 decimal points. Still, that is probably it. Take a look and let me know if you find anything else.

Has anyone else had a chance to construct a model?

[Chase Morgan]

Good point. If you take a look at part A on the HW, It's pretty obvious you cant borrow in period 5 (you can still withdraw). Whoops.

Here's my new model without borrowing in period 5. Can you send yours so we can all compare?

[Gabriela Tchaga]

here is what I have for the written portion for #8

here is what i got for the written portion on 8

1.179

2.252

3.279

4.0

5. 0

6.0

7.7

8.19

9.10,000

10.10,000

11. 10,000

12. 10,000

13. 10,000

14 3850

15. 3850

16, 3850

17. 3850

18. 3850

19. 

132334

obj value: 121,189

-gabi

On Sun, Nov 13, 2011 at 7:25 PM, Chase Morgan <cha...@me.com> wrote:

Good point. If you take a look at part A on the HW, It's pretty obvious you cant borrow in period 5 (you can still withdraw). Whoops.

Here's my new model without borrowing in period 5. Can you send yours so we can all compare?

--
Gabriela G. Tchaga
GGTc...@gmail.com
510-386-5619

[Darren Ng]

I got the same obj fx value (121,189)

[Chase Morgan]

As did I.

Sent from my iPhone

[Gabriela Tchaga]

what assumptions did u guys write down for 7c?

- additivity of obj fxn

- linearity of obj fxn

[Subramaniam Narayanan]

Hi Chase,

The problem states the following:

Jim can borrow up to $10,000 now, and at the end of each of the next 4 months.

This implies that Jim can actually borrow at the end of 4 months so thats how I got the solution. What do you think?

Thanks

- Narayanan

On Sun, Nov 13, 2011 at 7:25 PM, Chase Morgan <cha...@me.com> wrote:

Good point. If you take a look at part A on the HW, It's pretty obvious you cant borrow in period 5 (you can still withdraw). Whoops.

Here's my new model without borrowing in period 5. Can you send yours so we can all compare?

On Nov 13, 2011, at 7:15 PM, Manuel Severino wrote:

[Sudha Venkatesh]

I have the same question . My  intepretation was it allowed 5 borrowing( now+ end of next 4 months).

does anyone have an explanation?

[Subramaniam Narayanan]

No they all seem to say that we cannot borrow in period 5, unlike what the problem states. I am currently inclined to go with our initial approach.

[Chase Morgan]

After rereading the problem again, I agree with Subramaniam about borrowing @ T5.

[Gregory Taketa]

Here's a way to get the entire solver template on one landscape page.  I have made the decision variables on the vertical axis. 

---

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  Today's Topic Summary

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• HW 8 [5 Updates]
• HW 7 [3 Updates]

 HW 8

 HW 7

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[Manuel Severino]

You guys are right. I reread and I agree with the 5 total borrowings. I'm going to redo mine and then send it in.


Manny

[Manuel Severino]

I got a PV of CF of $132,833 (attached). I'm not sure it's right but I think it's close to what you folks did.

Thanks for all of the help. This email group is great.


Manny

[Sudha Venkatesh]

So far there are 2 different answer :

 

 $132,833 or  

121188.9

any   idea which one is correct?

I  

[Sudha Venkatesh]

Sorry i mentioned the wrong numbers in the previous mail:

 

any idea which answer is correct?

$132,833 or $129 515.

[Subramaniam Narayanan]

Hi Manny,

Could you double check row 15:

                                              L5 W5

                                               1   1   Loan in EOP 4 10000 <=  $  10,000.00 

Since this is the constraint for loan, shouldn't it be 1 only for L5 and 0 for W5?

Thanks

- Narayanan

[Manuel Severino]

Wow...bonehead mistake on my part. Thanks very much Subramaniam. I owe you a beer!

My final answer is $129, 515.


Manny

[Subramaniam Narayanan]

Hi Manny,

If you could double check my spreadsheet that will be awesome! My numbers don't match yours...

Thanks

- Narayanan

[Chase Morgan]

Hey subramaniam,

Take a look at how you calculated the objective coefficients. From what I recall, that's where you and I differed.

Sent from my iPhone

<HW_8.xlsx>

[Subramaniam Narayanan]

Hi Manny,

Whats your final answer again? I am getting $132,871. The objective coeff seems to match. The difference is you are using sumproduct and I am not.

Thanks

[Sudha Venkatesh]

no we are not assuming any payback.

On Mon, Nov 14, 2011 at 11:16 AM, Victoria Cheng <vch...@gmail.com> wrote:

quick question, im not sure if this was addressed earlier, but are we assuming that he is not paying back the 10k principle at the end or should he pay it back?

[Victoria Cheng]

quick question, im not sure if this was addressed earlier, but are we assuming that he is not paying back the 10k principle at the end or should he pay it back?

 

[Manuel Severino]

My final answer is $129, 515.11. If you send your latest file again, I'll check it with mine.


Manny

[Subramaniam Narayanan]

sending mine...

[Manuel Severino]

Check the formula for U28...

Manny

[Manuel Severino]

Hey Subramaniam,

I fixed the formula for U28 as it was reference another equation above which was causing your W4 to be zero. I reran the analysis and it gives the same answer I got. Let me know what you think.

Also, you can drag you constraint equations so that you don't have to input every constraint. See the spreadsheet solver (attached). I think that will save a lot of time.


Manny

[Subramaniam Narayanan]

Thanks so much! Yes indeed there was a problem in that one cell!!

Cool! Thanks everyone!

[Manuel Severino]

Who else got the answer to problem 8 in the 129k range?

Manny

[Chase Morgan]

I got $129,515.

[Rachna Patel]

same

[Elliott Le]

Same here as well.

Elliott Le

--
Elliott Le

[Carey Deangelis]

I also got 129,515. 

[Maddy Fouts]

So quick question why exactly would you withdraw just the min? Is it to ensure you still have cash on hand to pay back the 10,000 principal at the end of the period?

--

Madelaine G. Fouts
Class of 2011
Leavey School of Business

Santa Clara University