**Task:**

a. Construct Carroll’s flexible budget for 2015.

b. What are the profit variance, revenue variance, and cost variance?

c. Consider the revenue variance. What is the component volume variance? The price variance?

d. Break down the cost variance into volume and management components.

e. Break down the management variance into labor, supplies, and fixed costs variances.

f. Interpret your results. In particular, focus on the differences between the variance analysis here and the Carroll Clinic illustration presented in the chapter.

Find the following values for a lump sum assuming annual compounding:

a. The future value of $500 invested at 8 percent for one year

b. The future value of $500 invested at 8 percent for five years

c. The present value of $500 to be received in one year when the opportunity cost rate is 8 percent

d. The present value of $500 to be received in five years when the opportunity cost rate is 8 percent

Consider the following uneven cash flow stream:

a. What is the present (Year 0) value if the opportunity cost (discount) rate is 10 percent?

b. Add an outflow (or cost) of $1,000 at Year 0. What is the present value (or net present value) of the stream?

I took some captures on the explanation to this problem. Unless you totally understand it, then you do not need to read through the images I attached. But below is the problem question.

a. Construct an equal-weighted (50/50) portfolio of investments B and C. What are the expected rate of return and standard deviation of the portfolio? Explain your results.