For the cash flows shown below, determine the equivalent Annual value for all six years. Note:...
2. For the cash flows shown below, determine the total equivalent present worth & the equivalent annual worth in years 1 through 5. The interest rates specified are 10% for the years 1-3 and 12% for years 4 & 5. Draw the cash flow diagram as well. (Hint: Please note the different interest rates specified for different years] (4 + 2 + 2 pts) Year 0 1 2 3 4 5 Cash Flows, S 0 2000 2000 2000 4000 4000
Convert the cash flows shown above (black arrows) into an equivalent annual worth "A" in years 1 through 8 (red arrows) at i = 15% per year. *solve it in Excel, show formula A = ? 9_19 21 31 41 51 of 71 81 i=15% VVVVV A = $9000 $9000 + $7000
For the cash flows shown below, determine the present worth & the equivalent uniform worth in years 1 through 5 at an interest rate of 18% per year compounded monthly. Draw the cash flow diagram as well. (6+ 2 + 2 pts) Year 0 1 2 3 4 5 Cash Flows, S 0 200,000 0 350,000 0 400,000
Determine the annual worth for the cash flows shown below. Use a 10% interest rate. $10,000 0 1 2 3 4 5 6 Years $25 $25 $25 $25 $25 $25 $5,000 $4,000
"Determine the interest rate (i) that makes the pairs of cash flows shown economically equivalent. Calculate the Present Worth of the second cash flow series at an 18% annual interest rate using only one formula and then check the answer using another method of calculation." $1380 S1380 $1380 S1380 S1380 $1380 $1380 4 Years 1=? S2500 $1875 S1406 S1055 $791 $593 445 2 4 舀 . Years
An investment project costs $15,800 and has annual cash flows of $3,300 for six years. a. What is the discounted payback period if the discount rate is zero percent? b. What is the discounted payback period if the discount rate is 4 percent? c. What is the discounted payback period if the discount rate is 20 percent?
A company that makes clutch disks had the cash flows shown below for one department with a MARR of 25%. Calculate (a) the internal rate of return (Hint: 20%<=i*<=22%) and (b) the composite rate of return (Hint: 18%<=i’<=20%), using a reinvestment rate of 20% per year. Should the company continue to make clutch disks? Year Cash flow, $ 0 6000 1 -10000 2 12000 3 -10400
Consider the cash flows represented in the figure below and compute the equivalent annual worth at /- 10% $120 $190 $190 The equivalent annual worth is $ (Round to the nearest cent.)
Given the net cash flows for the mutually exclusive projects A and B shown in the table below and a MARR of 12%. n Project A Project B 0 -$25000 -$25000 1 $2000 $10000 2 $6000 $10000 3 $12000 $10000 4 $24000 $10000 5 $28000 $10000 NPW AE a) Solve for the NPW and AE for each project and fill in the respective boxes. b) Which project would you select?
Find the value of x below such that the positive cash flows will
be exactly equivalent to the negative cash flows, if the interest
rate is 10% per year
Find the value of x below such that the positive cash flows will be exactly equivalent to the negative cash flows, if the interest rate is 10% per year. $700 $700 Answer: Year 0 1 2 3 4 5 6 7 8 9 10 11 12 HHHHHHHHHHHH Equation: $800 $800 $950