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1-7 Please Exercise: Rate of Return 1 Attempt to Calculate Rate of Return by Trial and Error Given Capital Costs 4.8 E4 $ Revenue 1.9E4

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1-7 Please

Exercise: Rate of Return 1 Attempt to Calculate Rate of Return by Trial and Error Given Capital Costs 4.8 E4 $ Revenue 1.9E4 $ yr Operation and Maintenance Costs = 9.0E3 $ yr1 Salvage Value 1.7E4 $ Project Lifetime = 4 yr The Rate of Return is the effective interest rate that gives net present worth zero. It may occur between one of the effective interest rates used below. If greater accuracy is required, one could subdivide the interval of interest If the present worth is negative when the effective interest rate is zero, the project has no return If the present worth is positive when the effective interest rate is 0.10, the rate of return is 0.10 Question(s) 1. What total number of compounding periods should be used? (Unitless) (Answer Significant Figures 1) Score My Answer Practice Investigate 2. What is the Present Worth if the Effective Interest Rate 0? 3. What is the Present Worth if the Effective Interest Rate 0.02? 4. What is the Present Worth if the Effective Interest Rate 0.04? 5. What is the Present Worth if the Effective Interest Rate 0.06? 6. What is the Present Worth if the Effective Interest Rate 0.08? 7. What is the Present Worth if the Effective Interest Rate 0.10? Attempt 1/3 of Part 1/7 for 1.43 points. Points (So Far/Possible/Total): 0/10/10 points

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