201 11. Determine the IRR for an equipment that costs $250,000 and would provide positive cash of each year for the next four flows of $100,000, $90,000, $80,000, and $20,000 at the end years.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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11. Without excel
a
246
A/P, S/.2.0.5378
A/F₁s/12=6.4378
Option is bewer
0.5373
0.481
EVAC - 2800-4500 (4,5/12) + 500 (15/12)=423.30$
11. Determine the IRR for an equipment that costs $250,000 and would provide positive cash
flows of $100,000, $90,000, $80,000, and $20,000 at the end of each year for the next four
years.
ai elasts Wor) yniau atvin 0975
12. Pam promises to pay Sandy $4,000 in year 4 and another $6,000 in year 8 for a loan of $4,000
from Sandy today. What is the ROR that Sandy is getting? Assume interest is compounded
monthly.
4x1248 month
to&&*12-96 month
4,000 = 4,000,1,48) + 6000 (11,94)
4,000 = 4,000/114114²6,000/1.1"
AM A
3%
Transcribed Image Text:a 246 A/P, S/.2.0.5378 A/F₁s/12=6.4378 Option is bewer 0.5373 0.481 EVAC - 2800-4500 (4,5/12) + 500 (15/12)=423.30$ 11. Determine the IRR for an equipment that costs $250,000 and would provide positive cash flows of $100,000, $90,000, $80,000, and $20,000 at the end of each year for the next four years. ai elasts Wor) yniau atvin 0975 12. Pam promises to pay Sandy $4,000 in year 4 and another $6,000 in year 8 for a loan of $4,000 from Sandy today. What is the ROR that Sandy is getting? Assume interest is compounded monthly. 4x1248 month to&&*12-96 month 4,000 = 4,000,1,48) + 6000 (11,94) 4,000 = 4,000/114114²6,000/1.1" AM A 3%
Alt. B
$3,750
1,000
6
Alt. A
Alt. B
Initial cost
$1,700 $2,100
Benefit/year
1,000 1,000
2
Life in years
3
vi bor i ident
10. Choose the best alternative among the three alternatives given in the table below. Use of
annual cash flow analysis is required.
Alt B
A
B
C
CEVAC = 700-1900 (53) + 9001 513): 287.805
Initial cost
$4500
$1900
$1200
002.
Annual benefit
$2800
$700
$300
АНС
CHE
M
Salvage value
$500
$900
0
EOAC-300-1200 (-0³) - $240
VIDE
Life in years
MARR
2 years 3 Years
Infinity
5%
A
A/P, S/.2.0.537
Option is
A/F₁s/12=6.4378
0.5373
0.4812
EUAC=2800-4500 (4,5/12) + 500 (15/12)=423.805
046X1218
11. Determine the IRR for an equipment that costs $250,000 and would provide positive cash
flows of $100,000, $90,000, $80,000, and $20,000 at the end of each year for the next four
years.
Leidsm Worluniau
12. Pam promises to pay Sandy $4,000 in year 4 and another $6,000 in year 8 for a loan of $4,000
from Sandy today. What is the ROR that Sandy is getting? Assume interest is compounded
monthly.
4x12=48 month
4,000=4,000,48) + 6000 (₁94)
&&*12-96month
4,000 = 4,000/114114-6,000/(1+1"
6,000/4000 - LA 1)^2
6/4-A²-+
2AZ-ZA-0
A=0.012872 110
ساط
Transcribed Image Text:Alt. B $3,750 1,000 6 Alt. A Alt. B Initial cost $1,700 $2,100 Benefit/year 1,000 1,000 2 Life in years 3 vi bor i ident 10. Choose the best alternative among the three alternatives given in the table below. Use of annual cash flow analysis is required. Alt B A B C CEVAC = 700-1900 (53) + 9001 513): 287.805 Initial cost $4500 $1900 $1200 002. Annual benefit $2800 $700 $300 АНС CHE M Salvage value $500 $900 0 EOAC-300-1200 (-0³) - $240 VIDE Life in years MARR 2 years 3 Years Infinity 5% A A/P, S/.2.0.537 Option is A/F₁s/12=6.4378 0.5373 0.4812 EUAC=2800-4500 (4,5/12) + 500 (15/12)=423.805 046X1218 11. Determine the IRR for an equipment that costs $250,000 and would provide positive cash flows of $100,000, $90,000, $80,000, and $20,000 at the end of each year for the next four years. Leidsm Worluniau 12. Pam promises to pay Sandy $4,000 in year 4 and another $6,000 in year 8 for a loan of $4,000 from Sandy today. What is the ROR that Sandy is getting? Assume interest is compounded monthly. 4x12=48 month 4,000=4,000,48) + 6000 (₁94) &&*12-96month 4,000 = 4,000/114114-6,000/(1+1" 6,000/4000 - LA 1)^2 6/4-A²-+ 2AZ-ZA-0 A=0.012872 110 ساط
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