Assignment 1 – SAS Basics Please submit your SAS code and a screenshot of the first 10 observations of your final output dataset for each question. 1. Import rent.csv into SAS as rent, and geo.csv into SAS as geo. And do the following: 1) Merge rent and geo by zipcode and save the output data as rent_geo; 2) Keep the data for Texas only and save the new data as rent_tx. Do parts 3 and 4 based on rent_tx. 3) Delete the observation if n_rents < 0. 4) Find the total number of rents for each rental_category in each county. rent.csv geo.csv 2. Import ketchup.xlsx into SAS as ketchup. Use ARRAY to transpose the original “fat” dataset to a “tall” dataset. This means that each observation in the original dataset will take four rows in the output dataset, each row representing a ketchup brand. The new dataset should have the following variables: 1) ID; 2) Brand Name; 3) A dummy variable indicating whether the brand is chosen or not; 4) Price; 5) Whether the brand is on display or not. ketchup.xlsx 3. Suppose you want to start a new health club in Arlington. You have asked noted Dallas resident Mark Cuban to invest in the project. To convince Cuban that the health club is an attractive investment, you are going to project the Net Present Value (NPV) of 10 years of cash flows. Use Do-Loop in SAS to perform the task with the following assumptions: It will cost $900,000 in capital expense to build the health club and buy equipment. This capital expense will be depreciated on a straight-line basis for 10 years. For simplicity, you can assume the $90,000 (0.1*$900,000) annual depreciation is taken mid-year on July 1. Variable costs of $100 per year are associated with each member. The annual membership fee is $400. Annual fixed costs of $350,000 will be incurred by the health club. 1,000 new members will join each year. The health club will have an 80% annual retention rate. Working capital is 10% of annual revenue. Profits are taxed at 40%. The annual discount rate is 10%. Some key accounting relationships you will need for solving this question: Before-Tax Profits = Revenues – (Variable and Nondepreciated Costs) – Depreciation After-Tax Profits = (1-Tax Rate) * Before-Tax Profits Working Capital = Current Assets – Current Liabilities (will be modeled as a fixed percentage of revenue.) Cash Flow = After-Tax Profits + Depreciation – Change in Working Capital
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