Profit and loss (in $1000 units) associated with the sale of a vision guided machine tool loading
Question:
Profit and loss (in $1000 units) associated with the sale of a vision guided machine tool loading system and the resulting NCF amounts are recorded.
(a) Use sign-change rules to determine the possible number of i* values.
(b) Find all i* values between 0 and 100%.
(c) If the required MARR for the company is 15% per year, how small can the gradient be for years 3 through 6?
Year .................................... Cash Flow, $
0 ........................................... −5,000
1 ......................................... −10,100
2 ............................................. 4,500
3 ............................................. 6,500
4 ............................................. 8,500
5 ........................................... 10,500
6 ........................................... 12,500
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...
Step by Step Answer:
a One sign change in NCF and cumulative CF indicates ...View the full answer
