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Homework 2 Helper For question 5.19, solve using a spreadsheet program such as Excel. Indicate the spreadsheet formula showing numeric values rather than cell references. For example, for the value that $100 today could grow to in 2 years, assuming 10 percent annual compounding, the spreadsheet solution formula would be = FV(10%,2,0,100). Note that since there is no annuity payment (PMT) in this problem, it is necessary to show the blank between two commas or a zero after the number of periods. In addition, answer the questions using formulas with cell references. Q5.19 - Suppose your parents have just retired and have $1 million in a retirement account. For how many years can they withdraw $5,000 at the beginning of each month for expenses, assuming that the account will continue to earn a 5 percent annual return until it is exhausted? Q5.29 – The city museum will have a Picasso exhibit on loan for 3 years. As part of the conditions of the loan, a specialized alarm and security system must be installed. High Security Company will install a suitable system for a $50,000 initial payment and $2,500 per month in monitoring fees. Tight Security Company will install a suitable system for a $75,000 initial payment and $1,675 per month in monitoring fees. Both security systems would be used for 3 years. Assuming an annual discount rate of 9 percent with monthly compounding, which contract has the lowest net present value? Q7.31 - Meals has many sources of income, but each source pays Meals differently. Specifically, Meals has contracts with the city, county, and state to provide food services. In addition, Meals has contracted with a private foundation to augment its foods with more healthful options. · The city owes Meals $400,000: Half of that debt is current, one quarter is more than 30 days but less than 61 days old, 15 percent is between 61 and 90 days old, and the remainder is more than 91 days old. · The county owes Meals $900,000, only one third of which is current; another one third is more than 30 days but less than 61 days old, and the remainder is more than 90 days old. · The state owes Meals $1.5 million; 40 percent is current, 30 percent is between 30 and 60 days old, 20 percent is between 61 and 90 days old, and the remainder is more than 91 days old. · The Foundation owes Meals $150,000, of which half is current and the other half is more than 30 days but less than 61 days old. Prepare an accounts receivable aging schedule for Meals by total dollars and by percent. Q8.27 – The fire department expected to spend $100,000 in April. Actually, it spent $108,680. The department thought it would pay each member of its team of firefighters $25 per hour. However, it paid them $26 per hour on average. The department expected that the team of firefighters would work a total of 4,000 hours and fight 100 fires. Of course, many of the hours the firefighters are on duty in the station house are between fires. Those hours are considered to worked and the firefighters are paid for those hours. The actual results were 4,180 hours worked by the team of firefighters and 110 fires fought by the department. What was the total variance? What were the rate (or price), quantity, and volume variances? Which are variances were favorable and which were unfavorable?