Engineering Economic Analysis: Rate of Return Analysis

I need to solve for i* (ror) Net Cash Flow Project A: -18000, +10000, +20000, +30000 Project B: -20000, 32000, 32000, -22000 Project C: +34578, -18000, -18000, -18000 Project D: -56500, -2500, -6495, -78345 (assuming 1st # is n=0, then n=1... n=3) Project Z: -100, 60, 900 This is what I got, I setup a present worth component for each year and did a calc solve for i -- after setting it = 0 to zero. For a) -.11 b).92 c).37 d) 0 bc there is no sign change z) 2.32 both b and z are unrealisitic - Please solve for i* to compare answers with me. Please tell me where I went wrong with series b and d.

Calculating IIR with a non-simple cash flow

Attached are two images of two problems and my two solutions. I feel fairly comfortable with 7-11 but would like you to double check it. 7-13 does not have a good example in the book. I did a present worth calculation and solved for i - it was a quadratic equation. However, I get 0% and 50% as my answer. This is counter-intuitive. Where did I go wrong? Thank you.

Tax Depreciation

Please double check these two problems. The only concern I have is the 5 versus 8 years on the first problem. However, I think I did the calculations correctly. In the 2nd problem, only the building is depreciable and not the land. So, I subtracted the cost of the land out of the initial and salvage - and used that for the calculations. Since purchasing the land resulted in a "salvage" value of more (meaning it appreciated) than the initial cost, the annual "depreciation" values are negative. Is this wrong? Thanks.

Decision Making Cost Concepts

Below is a question and answer. I don't understand how the answer is arrived at. The ratio part is confusing me and I don't know how it plays into the breakeven point. Breakeven point = fixed cost /(unit price - var unit cost) - however I don't arrive at the correct answers. Please show me how to arrive at the correct answers. Product A: Selling Price $10 Variable Costs $5 Fixed Costs $2000 Product B: Selling Price $12 Variable Costs $10.00 Fixed Costs $6 Q. [a] If these products are sold in the ratio of 4a to 3b, what is break even point? what about 5a to 5b? In order to maximize profit, which product mix should be pushed? [b] Assume that product A requireds .5 ... click for more

Economic Homework help

A software company earned 10 million this year. Suppose the growth rate of the software company and the interest rate are both constant and the software company will be business for years to come. Determine the the value of the software company when: 1. the interest rate is 10% and profits grow by 4% per year 2 the interest rate is 10% and profits grow by 0% per year 3. the interest rate is 10% and profits decline by 4% per year