3232ex5-1 (1) - -4,500,000-12,500,000-8,000,000...

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Example 5.1: IRR - project with cost only Cash Flow MARR = 15% Term CMS FMS 0 -4,500,000 -12,500,000 1 -7,412,900 -5,504,100 2 -7,412,900 -5,504,100 3 -7,412,900 -5,504,100 4 -7,412,900 -5,504,100 5 -7,412,900 -5,504,100 6 -7,412,900 -5,504,100 6 Salvage 500,000 1,000,000 Issues: You must do one project anyway How to analzye with IRR?
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Cash Flow MARR = 15% Term CMS FMS
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Unformatted text preview: -4,500,000-12,500,000-8,000,000 1-7,412,900-5,504,100 1,908,800 2-7,412,900-5,504,100 1,908,800 3-7,412,900-5,504,100 1,908,800 4-7,412,900-5,504,100 1,908,800 5-7,412,900-5,504,100 1,908,800 6-7,412,900-5,504,100 2,408,800 6 Salvage 500,000 1,000,000 IRR 12.4333% Incremental FMS-CMS IRR = 12.43% < 15% Not good...
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This note was uploaded on 11/19/2010 for the course ME 3232 taught by Professor Lyon during the Fall '10 term at University of New Brunswick.

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3232ex5-1 (1) - -4,500,000-12,500,000-8,000,000...

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