CH.7 - 7.1 A rate of return of 100% means that the entire...

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7.1 A rate of return of –100% means that the entire investment is lost and no money is returned. 7.4 Monthly = $100,000(A/P,0.5%,360) $599.55 Ballon = $100,000(F/P,0.5%,60) - $599.55(F/A,0.5%,60) $100,000(1.3489) - $599.55(69.7700) $93,059.40 7.7 0 = -$30,000 + ($27,000 - $18,000)(P/A,i,5) + $4,000(P/F,i,5) n NCF 0 $(30,000.00) 1 $9,000.00 2 $9,000.00 3 $9,000.00 4 $9,000.00 5 $13,000.00 IRR = 17.85% 7.10 n Cost Rev. NCF 0 -10 0 -10 1 -4 2 -2 2 -4 3 -1 3 -4 9 5 4 -3 9 6 5 -3 9 6 6 -3 9 6 IRR = 14.55% 7.13 n Cost Rev. NCF 0 $(41,000,000.00) $- $(41,000,000.00) 1 $- $3,300,000.00 $3,300,000.00 2 $- $3,300,000.00 $3,300,000.00 3 $- $3,300,000.00 $3,300,000.00 4 $- $3,300,000.00 $3,300,000.00 5 $- $3,300,000.00 $3,300,000.00
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6 $- $3,300,000.00 $3,300,000.00 7 $- $3,300,000.00 $3,300,000.00 8 $- $3,300,000.00 $3,300,000.00 9 $- $3,300,000.00 $3,300,000.00 10 $- $3,300,000.00 $3,300,000.00 11 $- $3,300,000.00 $3,300,000.00 12 $- $3,300,000.00 $3,300,000.00 13 $- $3,300,000.00 $3,300,000.00 14 $- $3,300,000.00 $3,300,000.00 15 $- $3,300,000.00 $3,300,000.00 16 $- $3,300,000.00 $3,300,000.00 17 $- $3,300,000.00 $3,300,000.00 18 $- $3,300,000.00 $3,300,000.00 19 $- $3,300,000.00 $3,300,000.00 20 $- $3,300,000.00 $3,300,000.00 21 $- $3,300,000.00 $3,300,000.00 22 $- $3,300,000.00 $3,300,000.00 23 $- $3,300,000.00 $3,300,000.00 24 $- $3,300,000.00 $3,300,000.00 25 $- $3,300,000.00 $3,300,000.00 26 $- $3,300,000.00 $3,300,000.00 27 $- $3,300,000.00 $3,300,000.00 28 $- $3,300,000.00 $3,300,000.00 29 $- $3,300,000.00 $3,300,000.00 30 $- $3,300,000.00 $3,300,000.00 a) IRR = 6.99% n Cost Rev. NCF 0 $(41,000,000.00) $- $(41,000,000.00) 1 $- $4,380,000.00 $4,380,000.00 2 $- $4,380,000.00 $4,380,000.00 3 $- $4,380,000.00 $4,380,000.00 4 $- $4,380,000.00 $4,380,000.00 5 $- $4,380,000.00 $4,380,000.00 6 $- $4,380,000.00 $4,380,000.00 7 $- $4,380,000.00 $4,380,000.00 8 $- $4,380,000.00 $4,380,000.00 9 $- $4,380,000.00 $4,380,000.00 10 $- $4,380,000.00 $4,380,000.00 11 $- $4,380,000.00 $4,380,000.00 12 $- $4,380,000.00 $4,380,000.00 13 $- $4,380,000.00 $4,380,000.00 14 $- $4,380,000.00 $4,380,000.00 15 $- $4,380,000.00 $4,380,000.00
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16 $- $4,380,000.00 $4,380,000.00 17 $- $4,380,000.00 $4,380,000.00
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This note was uploaded on 04/11/2010 for the course MST 502 taught by Professor Atals during the Spring '10 term at SUNY IT.

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CH.7 - 7.1 A rate of return of 100% means that the entire...

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