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ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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
Transcribed Image Text:Management of Cullumber, Inc., is considering investing in three independent projects. The costs and the cash flows are given in the
following table. The appropriate cost of capital is 13.46 percent.
Year
0
1
2
3
4
Project 1
-$250,000
63,000
81,100
78,000
101,200
Project 2
-$323,400
The IRR of project 1 is
152,525
168,350
105,900
Compute the project IRRs. (Round final answers to 2 decimal places, e.g. 15.25%.)
Project 3
-$500,000
197,100
197,100
197,100
197,100
Identify the projects that should be accepted.
Cullumber should accept project(s)
%, project 2 is
%, and project 3 is
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- Phyllis invested 50000 dollars, a portion earning a simple interest rate of 4 percent per year and the rest earning a rate of 7 percent per year. After one year the total interest earned on these investments was 2900 dollars. How much money did she invest at each rate? At rate 4 percent : At rate 7 percent :arrow_forwardQuestion 7 For the below net cash flow and i=10%, answer the below questions by matching with the closest answer provided. net cash flow years 0 1 2 100 100 150 200 250 300 350 400 ✓ PW at year 0 for the base amount ✓ PW at year 0 for the gradient amount ✓ Total PW at the yeat 0 3 4 5 6 7 8 A. 620.56 B. 1200.75 C. 1113.61 D.580.14 E. 1153.90 F. 533.34arrow_forwardPresent wortharrow_forward
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