ENG106W12_HW7-assignment

# ENG106W12_HW7-assignment - ENG 106 Homework #7 Assignment...

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ENG 106 Homework #7 Assignment Winter 2012 Due: Wed, Feb 29, 3 pm, HW box 7.8 An investor bought 100 shares of stock at a cost of \$10 per share. He held the stock for 15 years and then sold it for a total of \$4,000. For the first three years, he received no dividends. For each of the next seven years, he received total dividends of \$50 per year. For the remaining period, he received total dividends of \$100 a year. What rate of return did he make on the investment? 7.10 Consider the following projects Net Cash Flow n A B C D 0 -\$1500 -\$1200 -\$2000 -\$2700 1 \$500 \$800 \$5600 \$360 2 \$100 \$600 \$4900 \$4675 3 \$100 \$500 -\$3000 \$2288 4 \$1000 \$700 -\$7000 5 -\$1400 6 \$2100 7 \$900 (a) Classify each project as either simple or nonsimple (b) Identify all positive i*s for each project 7.15 Consider the following project’s cash flows: Assume the project’s IRR is 10%. a) Find the value of X. b) Is this project acceptable at MARR = 8%? n

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## This note was uploaded on 04/03/2012 for the course ENGIN 106 taught by Professor Fizali during the Spring '12 term at Laney College.

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ENG106W12_HW7-assignment - ENG 106 Homework #7 Assignment...

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