Chapter_10_solutions - Problems 1, 3 and 4 were in fact...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Problems 1, 3 and 4 were in fact very unclear. There is no particular solution for those problems (not in the way they were worded), therefore they were graded based on the correctness of each particular attempt. Problems for tonight’s quiz will not involve problems 1, 3 or 4 from this homework. 2. Using Equivalent Uniform Annual Cost Analysis and assuming replacement for Option 2. Option 1: EUAC = 25,000(A|P, 6%, 10) EUAC = 3,397.5 Option 2: EUAC = 25,000(A|P, 6%, 5) 6250(.06) EUAC = 5,497.5 Therefore Option 1 is more favorable. 5. Internal Rate of return 28.6% n (P|F, I, n) F P 0 1 -300 -300 1 0.777604977 -100 -77.7604976 2 0.6046695 100 60.46694997 3 0.470194012 200 94.03880245 4 0.365625204 300 109.6875612 5 0.284311978 400 113.7247913 Sum 0.157607199 Therefore the rate of return for this cash flow is 28.6%
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6. a) 10,000 – (390)/i = 0 i = 3.9% For part b) this goes on for 100 repetitions i = 3.976% For part c) i = 3.23% d) He should buy the water treatment if he cannot get a MARR higher than the
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

Chapter_10_solutions - Problems 1, 3 and 4 were in fact...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online