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Given the net cash flow in the table, calculate: a) IRR 15% b) EROR by MIRR method, give ii=() and ib=18% c) ROIC given ii=15% d) based on these calculations, which one should the company choose to use to earn the highest profit? (To maximize the investment return) الجدول كان. Year 0 2000 Year 1-1600 Year2> 200 Year3>-1600 Year4> 400 2000 200 D a) IRR -1600 2 1600 ५ 100 FUND 400-1600 (F/p, 1, 1) + 200 (F) i°. 2) - 1600 (/, 1th, 8) + 2000 (Fips 4)=0 calculation Interpolation: 1=17 FW=-13-026 17.2% i=18 FW= 39-18432 -13-02- 5221682 89-18 X=0.7504 52-21 1=17-2496% b) 1-Plo for all (-) Cash Flow it. 18 Po=-1600 (18%, 1) - 16d PrF, 18% 13) = -3984.788 2- Fle for all (+) cocn Plow i;=15 FW4 = 400 + 200 (F/p, 15%, 2) + 2000 (F, 15%, 4) = 4162-5125 3. FW=o, Findi FW=0=4162-5125-3984.788 (F/p, 1, 4) >= 1.096% C- ROIC: FW₂ = 2000 FWI = 2000 (F/p, 15%,1)-1600=700 FW2 = 700 (F/P. 15/11) +200 = 1005 FW31005(F/P, 15%,1) - 1600=444.25 FWY = -44425 (F/p, 1, 1) + 400 = 0. d. The compony should be used MIRR i = -9.96%

Given the net cash flow in the table, calculate: a) IRR 15% b) EROR by MIRR method, give ii=() and ib=18% c) ROIC given ii=15% d) based on these calculations, which one should the company choose to use to earn the highest profit? (To maximize the investment return) الجدول كان. Year 0 2000 Year 1-1600 Year2> 200 Year3>-1600 Year4> 400 2000 200 D a) IRR -1600 2 1600 ५ 100 FUND 400-1600 (F/p, 1, 1) + 200 (F) i°. 2) - 1600 (/, 1th, 8) + 2000 (Fips 4)=0 calculation Interpolation: 1=17 FW=-13-026 17.2% i=18 FW= 39-18432 -13-02- 5221682 89-18 X=0.7504 52-21 1=17-2496% b) 1-Plo for all (-) Cash Flow it. 18 Po=-1600 (18%, 1) - 16d PrF, 18% 13) = -3984.788 2- Fle for all (+) cocn Plow i;=15 FW4 = 400 + 200 (F/p, 15%, 2) + 2000 (F, 15%, 4) = 4162-5125 3. FW=o, Findi FW=0=4162-5125-3984.788 (F/p, 1, 4) >= 1.096% C- ROIC: FW₂ = 2000 FWI = 2000 (F/p, 15%,1)-1600=700 FW2 = 700 (F/P. 15/11) +200 = 1005 FW31005(F/P, 15%,1) - 1600=444.25 FWY = -44425 (F/p, 1, 1) + 400 = 0. d. The compony should be used MIRR i = -9.96%

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Given the net cash flow in the table, calculate: a) IRR 15% b) EROR by MIRR method, give ii=() and ib=18% c) ROIC given ii=15% d) based on these calculations, which one should the company choose to use to earn the highest profit? (To maximize the investment return) الجدول كان. Year 0 2000 Year 1-1600 Year2> 200 Year3>-1600 Year4> 400 2000 200 D a) IRR -1600 2 1600 ५ 100 FUND 400-1600 (F/p, 1, 1) + 200 (F) i°. 2) - 1600 (/, 1th, 8) + 2000 (Fips 4)=0 calculation Interpolation: 1=17 FW=-13-026 17.2% i=18 FW= 39-18432 -13-02- 5221682 89-18 X=0.7504 52-21 1=17-2496% b) 1-Plo for all (-) Cash Flow it. 18 Po=-1600 (18%, 1) - 16d PrF, 18% 13) = -3984.788 2- Fle for all (+) cocn Plow i;=15 FW4 = 400 + 200 (F/p, 15%, 2) + 2000 (F, 15%, 4) = 4162-5125 3. FW=o, Findi FW=0=4162-5125-3984.788 (F/p, 1, 4) >= 1.096% C- ROIC: FW₂ = 2000 FWI = 2000 (F/p, 15%,1)-1600=700 FW2 = 700 (F/P. 15/11) +200 = 1005 FW31005(F/P, 15%,1) - 1600=444.25 FWY = -44425 (F/p, 1, 1) + 400 = 0. d. The compony should be used MIRR i = -9.96%
Transcribed Image Text:Given the net cash flow in the table, calculate: a) IRR 15% b) EROR by MIRR method, give ii=() and ib=18% c) ROIC given ii=15% d) based on these calculations, which one should the company choose to use to earn the highest profit? (To maximize the investment return) الجدول كان. Year 0 2000 Year 1-1600 Year2> 200 Year3>-1600 Year4> 400 2000 200 D a) IRR -1600 2 1600 ५ 100 FUND 400-1600 (F/p, 1, 1) + 200 (F) i°. 2) - 1600 (/, 1th, 8) + 2000 (Fips 4)=0 calculation Interpolation: 1=17 FW=-13-026 17.2% i=18 FW= 39-18432 -13-02- 5221682 89-18 X=0.7504 52-21 1=17-2496% b) 1-Plo for all (-) Cash Flow it. 18 Po=-1600 (18%, 1) - 16d PrF, 18% 13) = -3984.788 2- Fle for all (+) cocn Plow i;=15 FW4 = 400 + 200 (F/p, 15%, 2) + 2000 (F, 15%, 4) = 4162-5125 3. FW=o, Findi FW=0=4162-5125-3984.788 (F/p, 1, 4) >= 1.096% C- ROIC: FW₂ = 2000 FWI = 2000 (F/p, 15%,1)-1600=700 FW2 = 700 (F/P. 15/11) +200 = 1005 FW31005(F/P, 15%,1) - 1600=444.25 FWY = -44425 (F/p, 1, 1) + 400 = 0. d. The compony should be used MIRR i = -9.96%
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