C8 P11 15 - Year 0 1 2 3 IRR CFA $(15,000) $6,800 $7,380...

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CF A CF B Differential 0  $(15,000)  $(15,000)  $-    1  $6,800   $7,470   $(670) 2  $7,380   $7,640   $(260) 3  $4,900   $3,810   $1,090  IRR 13.80% 14.01% 9.61% =crossover rate Rate CF A CF B Differential 0%  $4,080   $3,920   $160  1%  $3,723   $3,583   $140  2%  $3,377   $3,257   $120  3%  $3,042   $2,941   $102  4%  $2,718   $2,633   $84  5%  $2,403   $2,335   $68  6%  $2,097   $2,046   $52  7%  $1,801   $1,764   $37  8%  $1,513   $1,491   $22  9%  $1,234   $1,226   $8  10%  $962   $967   $(5) 11%  $699   $716   $(18) 12%  $442   $472   $(30) 13%  $193   $234   $(41) 14%  $(49)  $3   $(52) 15%  $(285)  $(222)  $(63) 16%  $(514)  $(442)  $(72) 17%  $(737)  $(655)  $(82) 18%  $(955)  $(864)  $(91) 19%  $(1,166)  $(1,067)  $(100) 20%  $(1,373)  $(1,265)  $(108) 21%  $(1,574)  $(1,458)  $(116) 22%  $(1,769)  $(1,646)  $(124) 23%  $(1,960)  $(1,829)
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This note was uploaded on 04/05/2011 for the course FIN 350 taught by Professor Debruinne during the Winter '11 term at Grand Valley State University.

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C8 P11 15 - Year 0 1 2 3 IRR CFA $(15,000) $6,800 $7,380...

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