Consider two investments, A and B, with the sequences of cash flows given in Table P7.13. TABLE

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Consider two investments, A and B, with the sequences of cash flows given in Table P7.13.
TABLE P7.I3

(a) Compute i* for each investment.
(b) Plot the present-worth curve for each project on the same chart, and find the interest rate that makes the two projects equivalent.

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Contemporary Engineering Economics

ISBN: 978-0136118480

5th edition

Authors: Chan S. Park

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Question Posted: Apr 21, 2016 06:46 AM

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Consider two investments, A and B, with the sequences of cash flows given in Table P7.13. TABLE

Question:

Net Cash Flow Project AProject B -$30,000 11,000 10.000 10,000 8,000 5,000 -$30,000 2,000 6,000 10,000 24,000 26,000 0

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a Rate of return calculation Project A i 2375 P...View the full answer

Contemporary Engineering Economics

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