If MARR = 8%, find the following for cash flow below: EOY Net CF 0 -25,000...

Question

Question

If MARR = 8%, find the following for cash flow below:

a) find X if the AW = 6000

b) Find X if the ERR is 12% (you may assume X is positive)

c) Find X if the Benefit/Cost Ratio is 1.12 (you may assume X is positive)

business economics

Answer 1

Answer #1

A.

B. ERR = 12%

55,267.035 = 44,614.02 + 7.3359X

7.3359X = 10,653.02

X = $ 1,452 (Approximately)

C. Benefit cost ratio = 1.12

1.12×25000 = 5000 × 5.20637+ X × 4.622879 ×0.9259

28,000 = 26,031.85 + 4.28044X

4.28044X = 1,968.15

X = $ 460 (Approximately)

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Answer 2

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