Quiz set 3

# Quiz set 3 - Thursday 5.5 Answer is d NPW 9 = \$55,317 NPW 6...

This preview shows pages 1–2. Sign up to view the full content.

Assignment for week of Sep 22 to Sep 29, 2009 Problems from Park’s text: Tuesday, 9/22/09: 5.1 net cash flows = net inflows – net outflows: -30,000 year 0; 40,000 years 1-4; 43,000 year 5 5.2 a) 0.75 years assuming continuous payments, 1 year otherwise b) 0.85 years assuming continuous payments, 1 year otherwise (using linear interpolation) 5.4 a) A: \$754 B: \$1,134 C: -\$697 D: \$926 b) Plot required. Recommend doing this with Excel.

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Thursday, 9/24/09: 5.5 Answer is d. NPW @ 9% = \$55,317; NPW @ 6% = \$ 152,512; break even interest rate = IRR = 11.80%. 5.6 \$793,113 5.11 Hint: Do part b first. a) A 1 = 100; A 2 = 520; A 4 = 600 b) 20 % c) yes Tuesday, 9/29/09: 5.26 i a = 6.17% capitalized equivalent @ 6.17% per year = \$486,224 5.33 EFC A = \$92,794 EFC B = \$150,625 Choose A 5.37 NPW A = \$33,986 Choose A NPW B = \$29,478...
View Full Document

## This note was uploaded on 10/26/2009 for the course EE 366 taught by Professor Pore during the Fall '08 term at University of Texas.

### Page1 / 2

Quiz set 3 - Thursday 5.5 Answer is d NPW 9 = \$55,317 NPW 6...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online