Engineering Economics Question 6

The solution will be with the formula. Not tableau!!!..

(the solution will be with the formula. Not tableau.)

QUESTION 6 A redevelopment project is planned in the industrial zone of the city. In this case, where immediate investment is required, the expectations from the company that will take over the project are as follows. It should lift existing buildings over a four-year period and invest 5,200,000 TL in new construction at the end of the fourth year. It will collect all revenues and is expected to pay all expenses for a 10-year period. Meanwhile, all projects and properties will return to the city. Use the following data for the net cash flow values. EOY Net Cash Flow (TL) 800,000 500,000 100,000 -5,500,000 655,000 675,000 695,000 715,000 735,000 755,000 a) Generate the PW as the interest rate is not given you should determine whether multiple IRRs exist. b) According to the result that you obtain in part (a), check if there exist multiple IRR; then use the ERR method. In this part, to evaluate the external rate of return you should use E= 5% per year