None Applying the ERR and IRRmethod:A company which is purchased now for 23000 will lose1200 each year the first four years. An additional 8000invested in the company in the end of the fourth year willresult in a profit of 5500 each year from the fifth yearthrough the next fifteen year; when the company can be soldfor 33000. if MARR1-Calculate the ERR2-Calculate the IRR=12%

Based on the provided data, we must compute the external rate of return (ERR) and internal rate of…

Answered: Applying the ERR and IRR method: A…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Q) A civil engineer planning for her retirement places 11% of her salary each year into a high-technology stock fund. If her salary this year (end of year 1) is $200,000 and she expects her salary to increase by 4% each year, what will be th future worth of her retirement fund after 14 years provided it earns 8% per year? Solve it correctly. Typed or handwriting with concept use. Not solve in excel works.
A company purchase a piece of manufacturing equipment for an additional income. The expected income is $4.500 per semester. Its useful Me is 9 years Expenses are estimated to be $500 semiannually. If the purchase price is $44,000 and there is a salvage value of $4,500, what is the prospective rate of return (IRR) of this investment? The MARR is 10% compounded semiannually a IRR-6.02% semiannual Ob. IRR 12% semiannual OcIRR-623% semiannual Od. IRR-3% semiannual
None
Ife borrows $35,500.00 which she will repay by making interest only payments over 4 years. She is also required to set up a sinking fund that will be used to pay the principal at maturity, and that the bank will sieze in case of default. The interest rate on the loan is i(1) = 3.250%, and the interest rate on the sinking fund is i(2) = 4.875%. Payments on both the loan and the sinking fund will be made semi-annually. Ife defaults on the loan after 4 periods (just after making both her loan payment and sinking fund deposit). How much are the sinking fund deposits Ksfand how much does the lender lose on default? a.Ksf = $4,072.59, Loss = $18,604.27. b.Ksf = $4,937.91, Loss = $18,604.27. c.Ksf = $4,072.59, Loss = $35,500.00. d.Ksf = $4,937.91, Loss = $20,485.60. e.Ksf = $4,072.59, Loss = $20,485.60.
The annual income from an apartment complex is $23,155. The annual expense is estimated to be $2,588. The apartment complex could be sold for $110,110 at the end of 10 years. If your MARR is 10%, how much should you pay for the apartment complex if you were to buy it now?
None
The equivalent value in year 10 equals to : $600 i=5% 2 3 4 5 6 7 $300 $400 Select one: о a. =600(F/P,5%,10) + 300 (F/P,5%,7) + 400 (F/P,5%,4) b. =600(P/F,5%,10) + 300(P/F,5%,8) + 400 (F/P,5%,5) c. =500(F/P,5%,9) + 300 (F/A,5%,8) + 400 (F/P,5%,5) d. =600(F/P,5%,10) + 300 (F/P,5%,8) + 400 (F/P,5%,5) F = ? +∞ 8. 9 10
An Engineer plans to retire on the day he turns 60-year old. To address his retirement, he wants to set aside the same amount of funds each year for the next 10 years - starting next year- so that he will be able to withdraw $52,620 per year for 20 years once he retires, with the 1st withdrawal on his 61S birthday. The Engineer is 30 years old today. How much must he set aside each year for his retirement if he can earn 19% on his funds?
Q1): A company is planning to expand its business after 5 years from now. The expected The company required money can invest $ 500,000 at the end of every year for the next for the expansion programmed 2$ 5,000,000. five years. If the assured rate of of investment is 18% for the return check whether the accumulated in the would be company, sufficient to meet the fund for the expansion programmed. sum асcount If not, find the difference in amounts for which the company should make some other arrangement after 5 years.
Please find PW (present worth) for all the cash flow diagrams in the attached picture below: FOR PART 3
If I invest P50,000.00 to a corporation and we have a deal closed using simple interest with ROR equal to 7 %. How many years will I wait if I require them to give back my investment with 49 % profit?
Question 1 In planning for your retirement, you would like to withdraw $60,000 per year for 12 years. The first withdrawal will occur 20 years from today. Click here to access the TVM Factor Table Calculator What amount must you invest today if your return is 10% per year? $ Round entry to the nearest dollar. Tolerance is +4.

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