Faro laser trackers are portable contact measurement systems that use laser technology to neaiure large parts and machinery to accuracies of 0.0002 inches across a wide range of industrial applications. A customer that manufactures and installs cell phone relay dishes and satellite receiving stations reported the cash flows (in $ thousands) for one of its product lines. Year Expense $ Recipts $ 0 -3000 0 1 -1500 2900 2 -4000 5700 3 -2000 5500 4 -1300 1100 a. Determine the number of possible rate of return values b. Calculate a MIRR value for the cash flow, when the cost of capital is 15% and the reinvestment rate is 10%. Develop full expressions for PW, FW and MIRR, using conversion factors.
Faro laser trackers are portable contact measurement systems that use laser technology to neaiure large parts and machinery to accuracies of 0.0002 inches across a wide range of industrial applications. A customer that manufactures and installs cell phone relay dishes and satellite receiving stations reported the cash flows (in $ thousands) for one of its product lines. Year Expense $ Recipts $ 0 -3000 0 1 -1500 2900 2 -4000 5700 3 -2000 5500 4 -1300 1100 a. Determine the number of possible rate of return values b. Calculate a MIRR value for the cash flow, when the cost of capital is 15% and the reinvestment rate is 10%. Develop full expressions for PW, FW and MIRR, using conversion factors.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Faro laser trackers are portable contact measurement systems that use laser technology to neaiure large parts and machinery to accuracies of 0.0002 inches across a wide range of industrial applications. A customer that manufactures and installs cell phone relay dishes and satellite receiving
stations reported the cash flows (in $ thousands) for one of its product lines.
| Year | Expense $ | Recipts $ |
| 0 | -3000 | 0 |
| 1 | -1500 | 2900 |
| 2 | -4000 | 5700 |
| 3 | -2000 | 5500 |
| 4 | -1300 | 1100 |
a. Determine the number of possible
b. Calculate a MIRR value for the cash flow, when the cost of capital is 15% and the reinvestment rate is 10%. Develop full expressions for PW, FW and MIRR, using conversion factors.
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