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**Unformatted text preview: **5.25 CC = -250,000,000 – 800,000/0.08 – [950,000(A/F,8%,10)]/0.08 - 75,000(A/F,8%,5)/0.08 = $-251,979,538 5.28 Find AW of each plan, then take difference, and divide by i. AW A = -50,000(A/F,10%,5) = $-8190 AW B = -100,000(A/F,10%,10) = $-6275 CC of difference = (8190 - 6275)/0.10 = $19,150 5.31 CC = 100,000 + 100,000/0.08 = $1,350,000 5.34 No-return payback refers to the time required to recover an investment at i = 0%. 5.37 0 = -22,000 + (3500 – 2000)(P/A,4%,n) (P/A,4%,n) = 14.6667 n is between 22 and 23 quarters or 5.75 years 5.40 –250,000 – 500n + 250,000(1 + 0.02) n = 100,000 Try n = 18: 98,062 < 100,000 Try n = 19: 104,703 > 100,000 Chapter 5 2 n is 18.3 months or 1.6 years. 5.43 LCC = – 2.6(P/F,6%,1) – 2.0(P/F,6%,2) – 7.5(P/F,6%,3) – 10.0(P/F,6%,4) -6.3(P/F,6%,5) – 1.36(P/A,6%,15)(P/F,6%,5) -3.0(P/F,6%,10)- 3.7(P/F,6%,18) = $-36,000,921 5.46 I = 10,000(0.06)/4 = $150 every 3 months 5.49 Bond interest rate and market interest rate are the same. Therefore, PW = face value = $50,000. 5.52 I = (V)(0.07)/2 201,000,000 = I(P/A,4%,60) + V(P/F,4%,60) Try V = 226,000,000: 201,000,000 > 200,444,485 Try V = 227,000,000: 201,000,000 < 201,331,408 By interpolation, V = $226,626,340 5.55 PW = 50,000 + 10,000(P/A,10%,15) + [20,000/0.10](P/F,10%,15) = $173,941 Answer is (c) 5.58 PW X = -66,000 –10,000(P/A,10%,6) + 10,000(P/F,10%,6) = $-103,908 Answer is (c) 5.61 CC = -10,000(A/P,10%,5)/0.10 = $-26,380 Answer is (b) 5.64 Answer is (a) Chapter 5 3...

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- Fall '07
- CPKoelling
- Golden Gate Bridge