Question 1
Mafina company has two distinct selling seasons during a year: peak (spring-summer) and off-peak (fall-winter). Based on the sales data from the last three years, forecast peak sales for year 4 using an exponentially weighted moving average with a smoothing constant of .3 and an initial forecast of 105.
|
Year |
Season |
Sales |
|
1 |
peak |
105 |
|
1 |
off-peak |
40 |
|
2 |
peak |
100 |
|
2 |
off-peak |
30 |
|
3 |
peak |
85 |
|
4 |
off-peak |
50 |
Question 2
During negotiations with a supplier for yangk, two contract options have been proposed for the upcoming year. Option 1: a payment of $13,000 is due at the end of each quarter (every three months), and after the final payment of the year is made, a rebate is received from the supplier one month later for $9,000. Option 2: a payment of $12,000 is due at the end of each quarter, but no rebate is given. Based on an interest rate of 2% per month, what is the present value of each contract option and which one should the buyer select?
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