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Unformatted text preview: IE 150 Problem Set 4 NPV Analysis Instructions: Write/Type/Print your answers on yellow pad or bond paper (NO A4s). 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 will be read from top to bottom, and not top bottom diagonal right bottom.) Problem 1: The market value of the land in Marikina 2009 (prior to Ondoy) is PhP 1, 500/sqm. In 2010 (after Ondoy), it decreased to PhP 800/sqm. When people forget the Ondoy tragedy 15 years from now, the value of the land is expected to return to its 2009 price. Determine the NPV of this investment if MARR value of the land is expected to return to its 2009 price....
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- Spring '11