Suppose that a project has a 10-year expected life and initial cost of $150,000. Net revenues begin at $30,000 in Year 1, and then increase by $2,000 per year. In Year 5 the facility is expanded at a cost of $60,000 so that demand can continue to expand at $2,000 per year. How many interest rate roots for the PW equation are possible?

Answer rating: 100% (QA)

Solution Years Cashout flow Cash in flow Net Cashflow a b c d cb 0 150000 150000 1 30000 30000 ... View the full answer