Homework Answers
Solution :-
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Explanation is that the upper arrows in the cashflow diagram are always inflows and down arrow shows outflows. Apart from this we want in question that the present value of the costs are equal to present value of benefits and we all at IRR this happen. So we need to find IRR to get the answer
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(25 pts) For the following diagram, calculate the interest rate, to the nearest 1%, at which...
only question 2 please Question 2 (6 pts): For the following cashflow diagram, compute the interest...
only question 2 please
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Question 25 1 pts Which of the following statements is correct? The most widely quoted Eurocurrency...
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Question 2 1 pts A tax on interest income: causes the gross interest rate paid by...
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only question 2 please
Question 2 (6 pts): For the following cashflow diagram, compute the interest rate at which the costs are equivalent to the benefits. 80 80 80 80 80 80 0- 1- 2- --4- 200 200 Question 3 (8 pts): A machine has an initial cost of $500,000. This machine can reduce the annual operation and maintenance costs by $92,500 per year. At the end of the 10-year planning horizon, it was estimated that the machine would be...
Internal rate of return is: a. the interest rate which on firm uses to lend money to other firms b. the interest rate at which the equivalent benefits are equal to equivalent costs. c. the interest cost of liabilities and equity d. the interest rate of borrowing money
1) (12 pts) The following is a cash flow diagram: Cash Flows: 20000 10000 Cash Flow $35,000 $5,000 $7,500 $1000 $10,000 $5,000 Year 0 1 2 4 >-10000 -20000 30000 40000 Years 4 Annual Interest rate = 10%, compounded annually a) Calculate the Present wortlh b) Calculate the equivalent annuity for these cash flows c) Calculate the future worth of these cash flows at 5 years
Calculate the equivalent annual worth of the following scheduled payments at an interest rate of i= 15%! $200 $200 $200 $200 $200 $200 $150 $150 $100 $150 $150 $100 0 1 2 3 4 5 6 7 8 9 10 11 12 Click the icon to view the interest factors for discrete compounding when i = 15% per year The equivalent annual worth is $ (Round to the nearest dollar)
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