IIMU PGP 2019-21

SSM-1
Problems for Lab

Problem-1. Conference Budget Extended.

Consider the Conference Budget Problem done in the class. Repeat the work done in the class.
Additionally,

1.1 Add two columns to obtain, for each cost item, the cost due to delegates, and fixed (non-delegate)
cost.

Fixed costs are those that do not vary with the number of delegates: cost of conference room,
miscellaneous costs, cots due to speakers, volunteers, and guests.

1.2 Introduce parameters such that any of the five groups (delegates, speakers, volunteers, guests for
inauguration, and guests for dinner), can be easily made eligible or ineligible for any of the cost items
given in the problem.

1.3 Make number of days as a parameter. Assume that inaugural tea, and inaugural dinner occurs on the
first day; the program ends with afternoon tea on the last day. On each of the in-between days, in
addition to breakfast, morning tea, lunch, and afternoon tea, normal dinner (with unit price the same as
lunch) is to be provided to each speaker and delegate. Honorarium per speaker now is Rs. 2000
*number of days of the conference. Other unit prices are the same as before. Develop a new
spreadsheet if necessary.

Problem-2. Financial Appraisal of a School Project

A Philanthropist wants to construct an elementary school, consisting of classes 1 to 5, in his
neighborhood, and run it for ten years, on a no loss, no profit basis. At the end of the ten year period, he
intends to hand over the school to an NGO without charging anything.

The construction cost of the building, which is incurred right at the beginning, would be born from the
philanthropist, as would all the staff and operational expenses. Schools are exempt from property taxes.
The philanthropist hopes that the above expenditure would be recovered eventually through the fee
paid by the students over the ten year period.

As the construction is expected to take one year, the school would become operational only at the end
of the first year; only from then the classes can start. All the staff are expected to be in place by then,
and their payments are assumed to start from then onwards.

The following estimates are used for the planning of the project:

Number of square feet needed per student (including not only class room space, but all other places) =
30
Construction cost per square foot (Rs) = 400

Total staff cost per month (salaries + other expenses), considering all the staff (6 teachers + 1 peon + 1
clerk)= Rs 70,000, during the first year of operation. This would increase by 10% per year during every
subsequent year.

Other operational costs per year (electricity etc.) = Rs. 25000, during the first year of operation, and this
is expected to increase at the rate of 5% per year later.

Assume that the costs of an year can be assumed to occur at the beginning of the year

The philanthropist wants to keep the number of students in each class at fifty. The proposed fee per
students in each class is Rs 30,000 per year. These numbers are mere proposals, and they are open for
discussion. In the first year itself, he plans to admit students in all five classes. Ignore income tax in your
analysis.

1. Through analysis of the above cash flows with a discount rate of 0.1 Rupee per Rupee per year, find
the number of students per class which would lead to NPV of zero, keeping the fee at Rs 30000 per
year
2. Keeping the number of students per class at 50, find the fee per student in Rs per year, which would
lead to NPV of zero.
3. Construct a data table with the two independent variables Fee/student, and number of students per
class, and with dependent variable being NPV. Assume values of your own for the independent
variables.

Problem-3. Gender-Based Income Tax

In the class, we found only the tax rate.

Using the above tax rate, find the amount of tax to be paid by each customer.

Problem-4. Medal Tally in Atlanta Olympics (New tasks)

1. Sort the table in the descending order of total medals

2. Sort the table in the alphabetical order of continents

3. Using Advanced Filter, list the countries with number of gold medals greater than number of silver
medals (if any). How many such countries are there (use DCOUNT)?

4. Using Advanced Filter, list the countries with number of gold medals greater than number of bronze
medals (if any). How many such countries are there (use DCOUNT)?

5. How many countries have won gold medals close to the maximum number of gold medals won by a
country? For this purpose if a country’s gold medals are >=0.9 of maximum golds, the country is said to
be close to the maximum gold country.

6. Find the number of medals in each category won by India. Answer this using two different features:
Advanced Filter, and VLOOKUP.
Problem-5. Multiplex Movies.
Repeat the problem done in the class, for the case where Mr. JollyGood specifies not one time window
but two; a multiplex movie combination is considered feasible if it has at least one show with a starting
time that falls in at least one of the given two time windows.

Problem-6. Number of Retirements

Refer to the problem “Number of Retirements”, Page 148, in SS Note.

Solve the problem in two different ways:

1. Use EOMONTH function

2. Do not use EOMONTH; find explicitly whether the year of retirement is a leap year.