4403_HW3_2011

4403_HW3_2011 - Advanced Engineering and Corporate...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Advanced Engineering and Corporate Economics Fall 2011 IEOR E4403 Prof. Ali Sadighian Years Problem Set #3 Due date: 12/1/2011 1) Compute the present worth of cash flow that has a triangular pattern with 10% interest compounded continuously. 2) Suppose a cash flow increases continuously according to the function below, from year 0 to year 15. Find the present value of this cash flow stream under continuous compounding at r = 10%. ) 1 ( * 20 2 . 0 t t e F - - = Years t F 0 15 18 9 12 0 6 15 F t
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Advanced Engineering and Corporate Economics Fall 2011 IEOR E4403 Prof. Ali Sadighian 3) Consider the following project balance profiles for proposed investment projects. Note: The project balance represents the net equivalent amount of dollars committed to the project at each point in time over the life of the project. Project Balance(End of Year) Project i PB(i) 0 PB(i) 1 PB(i) 2 PB(i) 3 PB(i) 4 PB(i) 5 A 10% -$1,000 -1,000 -900 -690 -359 100 B 10% -$1,000 -750 -350 -120 55 150 C 15% -$1,000 -730 -199 -200 -76 -50 D 0% -$1,000 -800 -600 -400 -200 0 E 20% -$1,000 -1,225 -1,440 -1,528 -1,234 -1,000 F 18% -$1,000 -700 -302 0 233 354 Project±balance±figures±are±rounded±to±dollars.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/08/2012 for the course IEOR 4403 taught by Professor K during the Fall '09 term at Columbia.

Page1 / 3

4403_HW3_2011 - Advanced Engineering and Corporate...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online