Self-tightening wedge grips are designed for tensile testing applications up to 1200 pounds.The cash flow associated with the product is shown below. Determine the cumulative cash flow after year 4. Year 1 2 3 4 Revenue, $ 19,000 13,000 7,000 27,000 Costs, $ -30,000 -16,000 -8,000 -4,000     The cumulative cash flow after year 4 is $ .

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

Q6. Self-tightening wedge grips are designed for tensile testing applications up to 1200 pounds.The cash flow associated with the product is shown below. Determine the cumulative cash flow after year 4.

Year

1

2

3

4

Revenue, $

19,000

13,000

7,000

27,000

Costs, $

-30,000

-16,000

-8,000

-4,000

 

 

The cumulative cash flow after year 4 is $ .

 

Q7. rc-bot Technologies, manufacturers of six-axis, electric servo-driven robots, has experienced the cash flows shown in a shipping department. Determine the i* values between 0% and 100%.

 

Year

Expenses, $

Savings, $

0

-39,000

0

1

-13,000

18,000

2

-18,000

36,000

3

-18,000

36,000

4

-18,000

26,000

 

 

The i* value is %.

 

Q8. Required information

A new advertising campaign by a company that manufactures products that apply biometric, surveillance, and satellite technologies resulted in the cash flows shown.

 

Year

Cash Flow, $1000

0

2000

1

1200

2

–4000

3

–3000

4

2000

 

Calculate the unique external rate of return values using the ROIC method with an investment rate of 30% per year.

 

 

The external rate of return using the ROIC method is %.

 

 

Q9. Required information

A new advertising campaign by a company that manufactures products that apply biometric, surveillance, and satellite technologies resulted in the cash flows shown.

 

Year

Cash Flow, $1000

0

2000

1

1200

2

–4000

3

–3000

4

2000

 

Calculate the unique external rate of return values using the MIRR approach with an investment rate of 30% and a borrowing rate of 10% per year.

 

 

 

The unique external rate of return value using the MIRR approach is %.

 

 

Q10. A mortgage bond issued by Automation Engineering is for sale for $9,000. The bond has a face value of $10,000 with a coupon rate of 9% per year, payable semi-annually. What rate of return will be realized if the purchaser holds the bond to maturity 7 years from now?

 

The rate of return will be % per year.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Present Discounted Value
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education