a). Using an interest rate of 6% per interest period and a series of cash flows...

 

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a). Using an interest rate of 6% per interest period and a series of cash flows as presented in figure 1, estimate the present worth equivalent. What is the worth of the series at t-8. [10 MARKS] Figure 1. Series of cash flows GHS 400 GHS 300 ii. 0 iii. GHS 200 b). Briefly explain the following project estimation concepts: Order of magnitude estimates [ 3 MARKS] Preliminary Estimates [3 MARKS] Detailed Estimates [ 3 MARKS] 3 GHS 300 4 5 6 7 GHS 200 Tex ferve c). What is Break-even point? [3 MARKS] d). Explain the term Sensitivity Analysis. [3 MARKS] e) Identify two (2) economic principles that are relevant for decision making? [2 MARKS] f) Explain why economic efficiency must take precedence over technical efficiency [3 MARKS] a). Using an interest rate of 6% per interest period and a series of cash flows as presented in figure 1, estimate the present worth equivalent. What is the worth of the series at t-8. [10 MARKS] Figure 1. Series of cash flows GHS 400 GHS 300 ii. 0 iii. GHS 200 b). Briefly explain the following project estimation concepts: Order of magnitude estimates [ 3 MARKS] Preliminary Estimates [3 MARKS] Detailed Estimates [ 3 MARKS] 3 GHS 300 4 5 6 7 GHS 200 Tex ferve c). What is Break-even point? [3 MARKS] d). Explain the term Sensitivity Analysis. [3 MARKS] e) Identify two (2) economic principles that are relevant for decision making? [2 MARKS] f) Explain why economic efficiency must take precedence over technical efficiency [3 MARKS]

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a PWGHS1000 PWGHS4002001006300200100623002001006330020010064 PWGHS6001006600100626001006360010064 PW... View the full answer