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Unformatted text preview: process of putting in the new sprinkler system. If both the expansion and the new sprinkler system do not succeed and the company experiences losses on the two provisions, their policy can be executed. If only one of the provisions provides the company a loss, the policy cannot be employed. B) Year 1= -40,000 Year 2= 25,000 Year 3= 25,000 Year 4= 25,000 PV= 75,000/ (1.1)^4 = $51,226.01 PV Investment= 51,226.01-40,000 = 11,226.01 C) Y= 2.31 + .22X X=640,000/1000 = 640 Y= Number of derailments = 16.39...
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This note was uploaded on 04/08/2008 for the course FIN 381 taught by Professor Knowles during the Spring '08 term at Bryant.
- Spring '08