6.26 The tabulation of the incremental cash flows be-tween alternatives A and B is shown. AlternativeA has a 3-year life and alternative B a 6-year life.If neither alternative has a salvage value, what isthe (a) first cost of alternative A and (b) first costof alternative B?Year0123456Incremental Cash Flow(BA), $-20,0005,0005,00012,0005,0005,0005,000

Let a and b be the initial investment of alternatives A and B respectively.b−a=−20000…

Answered: 6.26 The tabulation of the incremental…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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(c)In the previous year, at Hub Motors ltd, for a particular model of Mercedes, Nissan and Ford, one could purchase (in million shillings) all three cars for a total of Ksh 152. This year, due to inflation, the same cars would cost Ksh 171. The cost of the Mercedes increased by 8.5%, the Nissan by 6.5%, and the Ford by 12.5%. If the price of last year’s Nissan was Ksh 7 less than the price of last year’s Mercedes, Use matrix inverse to find the price of each of the three cars last year. (Your matrix should be a three by three)
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Consider a cash flow of payments C₁, C₂, ..., Cn at the end of years t₁, t2, ..., tn. Suppose the nominal interest rate is r = 0.04 and that interest is compounded monthly. Tick all those statements that are correct. O a. The convexity is the same as the duration squared in this case. 300 O b. The effective duration is equal to 301 times the duration in this case. The effective duration is equal to 25 times the duration in this case. 26 Od. The duration and the effective duration are the same for this example. O e. If all the above cash payments are the same then the effective duration is equal to the duration. O c.
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