Question: (10pts) The incremental cash flow between two alternative is shown below. The equation(s) that can be used to correctly solve for the incremental rate of
(10pts) The incremental cash flow between two alternative is shown below. The equation(s) that can be used to correctly solve for the incremental rate of return is (are):
| Year | Incremental Cash Flow |
| 0 | -$20,000 |
| 1 through 10 | +$3,000 |
| 10 | +$400 |
|
0 = -20,000 (F/P, i, 10) + 3000 (F/A, i, 10) + 400
| ||
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0 = -20,000 (A/P, i, 10) + 3000 + 400 (A/F, i, 10)
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All of the above
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0 = -20,000 + 3000 (P/A, i, 10) + 400 (P/F, i, 10)
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