class_ch.7

class_ch.7 - 5.16% ERR FWd(i) = FWr(i) is equal to...

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Rate of Return (IRR) Let PW(i%) = 0 solve for i fig 7.2 n NCF 0  $(1,000.00) 1  $-    2  $-    3  $500.00  4  $-    5  $1,500.00  i* =  16.9% fig 7.3 n NCF 0  $(500,000.00) 1  $10,000.00  2  $10,000.00  3  $10,000.00  4  $10,000.00  5  $10,000.00  6  $10,000.00  7  $10,000.00  8  $10,000.00  9  $10,000.00  10  $710,000.00  i* =  5.16% i*(rate) = 
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Unformatted text preview: 5.16% ERR FWd(i) = FWr(i) is equal to PW(4%)(1+i)^n = FWr(4%) external rate 4% n NCF Fn $2,000.00 $2,000.00 1 $(500.00) $1,900.00 2 $(8,100.00) $(5,820.00) 3 $6,800.00 -5820(1+i') + 6800 i' = 16.84% MARR = 20% i' < MARR not feasible...
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class_ch.7 - 5.16% ERR FWd(i) = FWr(i) is equal to...

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