Question

Determine ar using the following PW relation (trial and error & interpolation): PW = -120,000 + 15,500(P/A, AI, 4) + 10,000(
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Use the rule that the correct choice for ∆i* involves NPV = 0

NPV = -120000 + 15500(P/A, ∆i*, 4) + 10000(P/F, ∆i*, 2) + 90000(P/F, ∆i*, 4) = 0

Here NPV is 2390.727 when ∆i* is 9% and NPV is -1131.412 when ∆i* is 10%

The correct ∆i* is found as ∆i* = 9% + (10% - 9%)*(2390.727/(2390.727 + 1131.412)) = 9.68%

Hence the correct choice is ∆i* = 9.68%

Add a comment
Know the answer?
Add Answer to:
Determine ar using the following PW relation (trial and error & interpolation): PW = -120,000 +...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Determine using the following PW relation trial and error & interpolation: PW = -90,000 + 12,000(P/A,...

    Determine using the following PW relation trial and error & interpolation: PW = -90,000 + 12,000(P/A, A1", 4) +10,000(P/F, A1, 2) + 45,000[P/F, A1,4 Do not include the in your answer. Round to two decimal numbers (g. 15.25). I recommend that the range between the two points positive and negative, 6%, not 2% and 15% since a wide range results in a loss accurate answer less than 5% deg try 2% and

  • Consider the following competing hypotheses and accompanying sample data drawn independently from normally distributed populations. (Note:...

    Consider the following competing hypotheses and accompanying sample data drawn independently from normally distributed populations. (Note: the automated question following this one will ask you confidence interval questions for this same data, so jot down your work.) H0: μ1 − μ2 = 0 HA: μ1 − μ2 ≠ 0    x−1x−1 = 60 x−2x−2 = 56   σ1 = 1.62 σ2 = 10.20   n1 = 25 n2 = 25 Calculate the value of the test statistic. (Negative values should be indicated by...

  • Use the following regression output from R studio and answer the following questions. 1. Comment on...

    Use the following regression output from R studio and answer the following questions. 1. Comment on the relation between the two test marks. A. There appears to be no  linear relation between the two test marks B. There appears to be strong negative linear relation between the two test marks. C. There appears to be weak positive linear relation between the two test marks. D. There appears to be strong positive  linear relation between the two test marks. 2. If the linear...

  • MATLAB Create a function that provides a definite integration using Simpson's Rule Problem Summar This example demo...

    MATLAB Create a function that provides a definite integration using Simpson's Rule Problem Summar This example demonstrates using instructor-provided and randomized inputs to assess a function problem. Custom numerical tolerances are used to assess the output. Simpson's Rule approximates the definite integral of a function f(x) on the interval a,a according to the following formula + f (ati) This approximation is in general more accurate than the trapezoidal rule, which itself is more accurate than the leftright-hand rules. The increased...

  • 1: Choose the correct statements from the following concerning andCNS using K-TYPE answer format: Mark A.B.C...

    1: Choose the correct statements from the following concerning andCNS using K-TYPE answer format: Mark A.B.C are correct; b if A, C: c if B, D; d if D only: e otherwise. A: The distance between the atoms is greater in CN3- than in CN5- B: CNS- would be casier to break (would require less energy to break) than CN3- C: CNS- is held together by a triple bond. D: CN3- is held together by a double bond. 2: K-TYPE...

  • Test the hypothesis using the​ P-value approach. Be sure to verify the requirements of the test....

    Test the hypothesis using the​ P-value approach. Be sure to verify the requirements of the test. Upper H 0 : p equals 0.84 versus Upper H 1 : p not equals 0.84 n equals 500 comma x equals 410 comma alpha equals 0.05 n=500, x=410, α=0.05 Is np 0 left parenthesis 1 minus p 0 right parenthesis greater than or equals 10np01−p0≥10​? Select the correct choice below and fill in the answer box to complete your choice. ​(Type an integer...

  • All of the following questions are in relation to the following journal article which is available...

    All of the following questions are in relation to the following journal article which is available on Moodle: Parr CL, Magnus MC, Karlstad O, Holvik K, Lund-Blix NA, Jaugen M, et al. Vitamin A and D intake in pregnancy, infant supplementation and asthma development: the Norwegian Mother and Child Cohort. Am J Clin Nutr 2018:107:789-798 QUESTIONS: 1. State one hypothesis the author's proposed in the manuscript. 2. There is previous research that shows that adequate Vitamin A intake is required...

  • Read through the case study and answer the following questions: Using appropriate concepts and theories from...

    Read through the case study and answer the following questions: Using appropriate concepts and theories from Block 2, Session 2, identify and discuss three main threats and three main opportunities that should be considered by Yum! in expanding its global reach within emerging markets such as China. (25 marks) Twelve marks will be awarded on the basis of the appropriateness of the three main threats and three main opportunities that you have identified (two marks each); there are no standard...

  • need ans for the following questions, the last 3 pages for more info. Questions: more info:...

    need ans for the following questions, the last 3 pages for more info. Questions: more info: expermint e/m avr=1.71033*10^11 7 2 points of the following options, which conditions for V or I produce the largest radius of the electron beam path r? Hint: Use e/m= 2V (5/4)*aP/(Nuo Ir) Maximum land Maximum V O Maximum land Minimum V Minimum I and Maximum V Minimum I and Minimum V 8 2 points By what factor will change if the radius of the...

  • The following ANOVA model is for a multiple regression model with two independent variables: Degrees of            Sum of                 Mean Source           Freedom            Squares              ...

    The following ANOVA model is for a multiple regression model with two independent variables: Degrees of            Sum of                 Mean Source           Freedom            Squares                Squares       F       Regression            2                    60 Error                   18                 120 Total                   20                 180 Determine the Regression Mean Square (MSR): Determine the Mean Square Error (MSE): Compute the overall Fstat test statistic. Is the Fstat significant at the 0.05 level? A linear regression was run on auto sales relative to consumer income. The Regression Sum of Squares (SSR) was 360 and...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT