PS 2 - Time Value of Money and MARR

# PS 2 - Time Value of Money and MARR - will be read from top...

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IE 150 Problem Set 2 Time Value of Money and MARR Instructions:  Write/Type/Print your answers on yellow pad or bond paper (NO A4’s). Use a different sheet per  problem.  Use phrases  to describe what you are doing. Do not present it as just a series of equations and  numbers.  Label each step. Ex: “Step 1: Set-up the Total Revenue Equation”, “Step 4: Solve for the NPV”.  Box the final answers.  Use clear formatting: Indent at each step. Show your answers in just 1 column. (The problem set
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Unformatted text preview: will be read from top to bottom, and not top bottom diagonal right bottom.) Problems 1-3: Identification 1. What does MARR stand for? 2. What are the factors that determine MARR? (there are 4 in the book) 3. Which among the 4 factors is the “strongest”? (the most governing factor that will determine the MARR) Problem 4-5: 4. List 3 reasons why money has “Time Value”. 5. Give a situation wherein money has no “Time Value”....
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