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According to the Descartes' rule, the number of positive i* value for the following cash flow is: Year 1 2 3 4 5 Revenue, $ 9,000 20,000 22,000 30,000 36,000 40,000 Cost, $ 35,000 12,000 15,000 23,000 25,000 25,000 25,000 4 3 1

According to the Descartes' rule, the number of positive i* value for the following cash flow is: Year 1 2 3 4 5 Revenue, $ 9,000 20,000 22,000 30,000 36,000 40,000 Cost, $ 35,000 12,000 15,000 23,000 25,000 25,000 25,000 4 3 1

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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According to the Descartes' rule, the number of positive i* value for the following cash flow is: Year 1 2 3 4 5 Revenue, $ 9,000 20,000 22,000 | 30,000 36,000 40,000 Cost, $ 35,000 12,000 15,000 23,000 25,000 25,000 25,000 4 3 2 1
Transcribed Image Text:According to the Descartes' rule, the number of positive i* value for the following cash flow is: Year 1 2 3 4 5 Revenue, $ 9,000 20,000 22,000 | 30,000 36,000 40,000 Cost, $ 35,000 12,000 15,000 23,000 25,000 25,000 25,000 4 3 2 1
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Identify the following interest rates as nominal or effective: (ABET, SO1) A: 1%= 6% per semiannual, compounded monthly B: 1%= 7% per year, compounded quarterly C: 1%= 1.4% per month Select one: O a. All of them are nominal O b. A and C are effective, and B is nominal rate O c. C is effective, and A and B are nominal rates O d. All of them are effective O e. A is effective, and B and Care nominal rates
Transcribed Image Text:Identify the following interest rates as nominal or effective: (ABET, SO1) A: 1%= 6% per semiannual, compounded monthly B: 1%= 7% per year, compounded quarterly C: 1%= 1.4% per month Select one: O a. All of them are nominal O b. A and C are effective, and B is nominal rate O c. C is effective, and A and B are nominal rates O d. All of them are effective O e. A is effective, and B and Care nominal rates
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Determine the present equivalent value (PW) of the following cash flow when the annual interest rate varies as indicated: Year Cash flows Interest rate 5% 1,000 (from year 0-1) 2. 1,000 6% 3. (from year 1-4) 4. 3,000 Select one: O a. 4650 O b. 5449 O c. 4250 O d. 5849 O e 5049
Transcribed Image Text:Determine the present equivalent value (PW) of the following cash flow when the annual interest rate varies as indicated: Year Cash flows Interest rate 5% 1,000 (from year 0-1) 2. 1,000 6% 3. (from year 1-4) 4. 3,000 Select one: O a. 4650 O b. 5449 O c. 4250 O d. 5849 O e 5049
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Find the uniform annual amount that is equivalent to a uniform gradient series in which the first year's payment is $6,800, the second year's payment is $6,550, the third year's payment is $6,300, and so on, and there is a total of 10 payments. The interest rate is 8%. Select one: O a. 5832 O b. 6026 O c 5639 O d. 6219 O e 6413
Transcribed Image Text:Find the uniform annual amount that is equivalent to a uniform gradient series in which the first year's payment is $6,800, the second year's payment is $6,550, the third year's payment is $6,300, and so on, and there is a total of 10 payments. The interest rate is 8%. Select one: O a. 5832 O b. 6026 O c 5639 O d. 6219 O e 6413
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Follow-up Question
Calculate the equivalent FW at i= 10% per year for the following net cash flow: Year Cash flow, $ -2,000 -2,000 3 -2,000 4. 4,600 5 4,600 4,600 Select one: O a. 6415 O b. 5091 O c. 4429 O d. 5753 O e. 7077
Transcribed Image Text:Calculate the equivalent FW at i= 10% per year for the following net cash flow: Year Cash flow, $ -2,000 -2,000 3 -2,000 4. 4,600 5 4,600 4,600 Select one: O a. 6415 O b. 5091 O c. 4429 O d. 5753 O e. 7077
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Follow-up Question
How long does it take for $8,000 to become $12,500 when the interest rate is 8% per year. (ABET, SO1) Select one: O a 72 Ob.7.8 Oc.58 O d.6.3 O e. 5.3
Transcribed Image Text:How long does it take for $8,000 to become $12,500 when the interest rate is 8% per year. (ABET, SO1) Select one: O a 72 Ob.7.8 Oc.58 O d.6.3 O e. 5.3
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Follow-up Question
If you invest $7,000 at 10% per year, compounded continuously, how much would it be worth in five years. Select one: O a. 11,543 O b.8,245 Oc.13,192 O d. 10,389 O e. 9,070
Transcribed Image Text:If you invest $7,000 at 10% per year, compounded continuously, how much would it be worth in five years. Select one: O a. 11,543 O b.8,245 Oc.13,192 O d. 10,389 O e. 9,070
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