Chapter3Slides - A B 1 Example: Airplane Purchase 2 Period...

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Example: Airplane Purchase Input P $1.30 billion Period Cash Flow Interest Rate 4.5% per quarter 0 $1.30 Periods 20 quarters 1 -- 2 -- Output 3 -- F $3.135 billion -- (programmed) 19 -- 20 -- F $3.135 billion (FV function) A B C D E F 1 2 3 4 5 6 7 8 9 10 11
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Example: High Speed Rail Construction Input A $450.00 million Period Cash Flow Interest Rate 8% per year 0 -- Periods 8 years 1 $450.00 2 $450.00 Output 3 $450.00 F $4,786 million 4 $450.00 (programmed) 5 $450.00 6 $450.00 F $4,786 million 7 $450.00 (FV function) 8 $450.00 A B C D E F 1 2 3 4 5 6 7 8 9 10 11 12
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Example: Military Aircraft Purchase Input A $155.60 million Period Cash Flow F G $77.80 million 0 -- -- Interest Rate 12.36% per semi-annual 1 $155.60 $196.44 Periods 3 semi-annual 2 $233.40 $262.25 3 $311.20 $311.20 Output F $769.89 million (summed) A B C D E F G 1 2 3 4 5 6 7 8 9
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Example: Gas Supply Contract Input A1 $4.55 million Period Cash Flow g 3% per year 0 -- Annual Prod  0.35  million tons 1 $4.55 Time One Price $13  per ton 2 $4.69 Interest Rate
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This note was uploaded on 04/26/2009 for the course IE 226 taught by Professor Tonkay during the Spring '09 term at Lehigh University .

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Chapter3Slides - A B 1 Example: Airplane Purchase 2 Period...

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