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4. What is the number of randomizations (in thousands) per year that is a breakeven between DRSI and SOTD if you use 10 % per


$7000 8 5 i i 3 2 Year $90 $90 $90 $200 $200 $200 $3000 I 6. The following two equations represented the rate of return for P
0 0
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Answer #1

Let i% be rate of return of Patawan, PW of Patawan is

PW at i% = -17000 - 2500 * (P/A, i%,5) + 5000 * (P/A, i%,5) + 1000 * (P/G, i%,5) + 3000 * (P/F, i%,5) = 0  

-17000 + 2500 * (P/A, i%,5) + 1000 * (P/G, i%,5) + 3000 * (P/F, i%,5) = 0  

Let i% be rate of return of Anakin, PW of Anakin is

PW at i% = -3000 - 200 * (P/A, i%,3) *(P/F, i%,1) - 90 * (P/A, i%,3) *(P/F, i%,5) + 7000 * (P/F, i%,8) = 0

-3000 - 200 * (P/A, i%,3) *(P/F, i%,1) - 90 * (P/A, i%,3) *(P/F, i%,5) + 7000 * (P/F, i%,8) = 0

Correct option is a.

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