Quiz set 3 - Thursday, 9/24/09: 5.5 Answer is d. NPW @ 9% =...

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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.
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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...
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Quiz set 3 - Thursday, 9/24/09: 5.5 Answer is d. NPW @ 9% =...

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