Consider the following project: Net cash flow -225 Period Change in value (economic depreciation) Expected economic income 2 91.55 253.25 The internal rate of return is 17%. The NPV, assuming a 17% opportunity cost of capital, is exactly zero. Calculate the expected economic income and economic depreciation in each year. (Negative answers should be indicated by a minus sign. Do not ro intermediate calculations. Round your answers to 2 decimal places.) Period 2

Consider the following project: Net cash flow -225 Period Change in value (economic depreciation) Expected economic income 2 91.55 253.25 The internal rate of return is 17%. The NPV, assuming a 17% opportunity cost of capital, is exactly zero. Calculate the expected economic income and economic depreciation in each year. (Negative answers should be indicated by a minus sign. Do not ro intermediate calculations. Round your answers to 2 decimal places.) Period 2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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