You are given the cash flow series for two projects, Alt. A and Alt. B. YEAR Alt. A 1 2 3 4 5 X X X X X Y Y Y Y Y Alt. B 0 - F1 - F2 6 X + S1 Y + S2 Assume that F2 F1, and X, Y, S1, and S2 are positive; the incremental rate of return (i*) on the additional investment in Alt. B can be calculated with the following expression: O 0 F2+Y (P/A, i*, 6) + S2(P/F. i*, 6) O 0(F2-F1) + (Y-X)(P/A, i, 5) + (S2-S1)(P/F, i*, 6) O 0= (F2-F1)(F/P. i. 6) + (Y-X)(F/A, i*, 6) + (S2-S1) O 0 (F2-F1) + (Y-X) + (Y+S2) - (X + S1) O 0 (F1-F2)(F/P. i*, 6) + (X-Y)(F/A, i*, 6) + (S2-S1) O 0 F1 + X(P/A, i*, 6) + S1(P/F, i*, 6) F2+Y(P/A, i, 6) + S2(P/F, i*. 6) 0 O 0 F1+ X(P/A, i, 5) + S1(P/F, i*, 6) 0-F2 + Y(P/A, i*. 5) + S2(P/F, i*. 6)
You are given the cash flow series for two projects, Alt. A and Alt. B. YEAR Alt. A 1 2 3 4 5 X X X X X Y Y Y Y Y Alt. B 0 - F1 - F2 6 X + S1 Y + S2 Assume that F2 F1, and X, Y, S1, and S2 are positive; the incremental rate of return (i*) on the additional investment in Alt. B can be calculated with the following expression: O 0 F2+Y (P/A, i*, 6) + S2(P/F. i*, 6) O 0(F2-F1) + (Y-X)(P/A, i, 5) + (S2-S1)(P/F, i*, 6) O 0= (F2-F1)(F/P. i. 6) + (Y-X)(F/A, i*, 6) + (S2-S1) O 0 (F2-F1) + (Y-X) + (Y+S2) - (X + S1) O 0 (F1-F2)(F/P. i*, 6) + (X-Y)(F/A, i*, 6) + (S2-S1) O 0 F1 + X(P/A, i*, 6) + S1(P/F, i*, 6) F2+Y(P/A, i, 6) + S2(P/F, i*. 6) 0 O 0 F1+ X(P/A, i, 5) + S1(P/F, i*, 6) 0-F2 + Y(P/A, i*. 5) + S2(P/F, i*. 6)
Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
ChapterMA: Math Assessment
Section: Chapter Questions
Problem 1.1MA
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Transcribed Image Text:You are given the cash flow series for two projects, Alt. A and Alt. B.
YEAR
1 2 3 4 5
Alt. A
Alt. B
X X X X X
YYY Y Y
0
- F1
- F2
6
X + S1
Y + S2
Assume that F2 > F1, and X, Y, S1, and S2 are positive; the incremental rate of return (i*) on the additional investment in Alt.
O 0-F2 +Y (P/A, i*, 6) + S2(P/F, i*, 6)
O 0 (F2-F1) + (Y-X)(P/A, i*, 5) + (S2-S1) (P/F, i*, 6)
O 0
(F2-F1)(F/P, i*, 6) + (Y-X)(F/A, i*, 6) + (S2-S1)
O 0
(F2-F1) + (Y-X) + (Y+S2) - (X + S1)
O 0
(F1-F2)(F/P, i*, 6) + (X-Y)(F/A, i*, 6) + (S2-S1)
O 0
F
+ X(P/A, i*, 6) + S1(P/F, i*, 6)
0
F2 +Y(P/A, i*, 6) + S2(P/F, i*, 6)
O 0
F1 + X(P/A, i*, 5) + S1(P/F, i*, 6)
0 = F2 +Y(P/A, i*, 5) + S2(P/F, i*, 6)
can be calculated with the following expression:
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