CEE
CEE_594_Solutions_PS__3_F.07

# CEE_594_Solutions_PS__3_F.07 - Professor Schuler...

• Notes
• GrandIceGuineaPig10448
• 9

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

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

Professor Schuler CEE594/ECON 494 Fall 2007 c. Eleven years is an eternity in this industry with rapid technological change. I’d re- estimate the entire model with recent data, particularly using performance measures. One can estimate the model with last year’s data, then forecast this year’s sales and compare with actuals to get a sense of which model performs best. Problem 2 a. Looking at the first five years alone, assuming all cash ﬂows and the 12% cost of capital are real values then (in thousands), 0 NPV = 5 5 1 1 55 1 250 55 (1.12) 1 t t t t r β = = - + = + . Let us also define 5 1 t t s β = = 3.60478. Therefore, 250 55 51.737.
This is the end of the preview. Sign up to access the rest of the document.
• Fall '07
• SCHULER
• Economics, Laborer, Professor Schuler

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern