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Posted on Sep 20, 2024

18. Apple's Internal Rate of Return (IRR) (first decimal; no rounding) is a) 49.3%; b) 55.9%; c) 64.1%; d) 67.8%. 19. HP's Internal Rate of

18. Apple's Internal Rate of Return (IRR) (first decimal; no rounding) is a) 49.3%; b) 55.9%; c) 64.1%; d) 67.8%. 19. HP's Internal Rate of Return (IRR) (first decimal; no rounding) is a) 43.4%; b) 48.6%; c) 53.1%; d) 59.9%. 20. The incremental Internal Rate of Return (AIRR) between the Apple and DISCRETE CASH FLOWS AND DISCRETE COMPOUNDING 10.00 % DISCRETE RATE OF INTEREST 1% = 0.1000 k% = 0.1200 (F/P 1%.n) (P/F, 1%,n) (A/P 1%,n) (PIA %n) (A/F1% ) FIA,1%, (A/G,1%,n) (PIG,%.n) 1.1000 1.2100 1.3310 1.4641 1.6105 1.7716 1.9487 2.1436 2.3679 2.5937 2.8531 3.1384 3.4523 3.7975 4.1772 4.5950 5,05451 5.5599 6.1159 .7275 0.9091 0.8264 0.7513 0.6830 0.6209 0.5645 0.5132 0.4665 0.4241 0.3855 0.3505 0.3186 0.2897 0.2633 0.2394 0.2176 0.1978 0.1799 01635 0.1635 0.1486 1.1000 0.5762 0.4021 0.3156 0.2638 0.2296 0.2054 0.1874 0.1736 0.1627 0.1540 0.1468 0.1408 0.1367 0.1315 0.1278 0.1247 0.1219 0.1195 4 40 0.1175 0.9091 1.7355 2.4869 3.1699 3.7908 4.3553 4.8684 5.3349 5.7590 6.1446 6.4951 6.8137 7.1034 7.3667 7.6061 7.8237 .0216 8.2014 8.3649 8.5136 1.0000 1.0000 0.0000 0.0000 0.4762 2.1000 0.4762 0.8264 0.3021 3.3100 0.9366 2.3291 0.2155 4.6410 1.3812 4.3781 0.1638 6.1051 1.8101 6.8618 0.1296 7.7156 2.2236 9.6842 0.1054) 9.4872 2.6216 12.7631 0.0874 11.4359 3.0045 16.0287 0.0736 13.6795 3.3724 19.4215 0.0627 15.9374 3.7255 22.8913 0.0540 18.5312 4.0641 26.3963 0.0468 21.3843 4.3884 29.9012 0.0408 24.5227 4.6988 33.3772 0.035727.9750 4.9955 36.8005 0.0315 31.7725 5.2789 40.1520 0.0278 35.9497 5.5493 43.4164 0.0247 40.5447 5.8071 46.5819 0.0219 45.59926.052649.6395 0.0195 51.1591 6.2861 52.5827 0.0175 57.2750 6.5081 55.4069 (F/G,%, (PICUN ik 0.0000 0.9091 1.0000 1.8347 3.1000 2.7772 6.4100 3.7367 11.0510 4.7138 17.1561 5.7086 24.8717 6.7215 34.3589 7.7528 45.7948 8.8028 59.3742 9.8719 75.3117 10.9605 93.8428 12.0689 115.2271 13.1974 139.7498 14.3465 167.7248 15.5164 199.497316.7076 236.4470 17.9205 275.9917 19.1554 321.5909 20.4128 372.7500 21.6930 PIC I N ) i=k 0.9091 1.8182 2.7273 3.6364 4.5455 5.4545 6.3636 7.2727 8.1818 9.0909 10.0000 10.9091 11.8182 12.7273 13.6364 14.5455 15.4546 16.3636 17.2727 18.1818 8 20 6 An architectural company must replace one of its super computers. The key parameters (all arbitrary values) of the three computers under scrutiny are provided below. Parameters 1. Initial Cost (S) Apple Dell 15,000 22,000 45,000 at EOY1 43,000 at EOY1 increasing by increasing by $5,000 2.0% annually annually thereafter thereafter 41,000 at EOY1 38,000 at EOY1 increasing by decreasing by 1% annually 2% annually thereafter thereafter 0 400 HP 26,000 46,000 at EOY1 increasing by $500 annually thereafter 2. Revenues ($) 3. Operating costs ($) 33,000 at EOY1 increasing by 0.5% annually thereafter 900 4. End-of-life salvage value (9) 5. Useful life (years) 10 EOY = End-of-year Industry standard for backhoes = 4 years MARR = 10% 18. Apple's Internal Rate of Return (IRR) (first decimal; no rounding) is a) 49.3%; b) 55.9%; c) 64.1%; d) 67.8%. 19. HP's Internal Rate of Return (IRR) (first decimal; no rounding) is a) 43.4%; b) 48.6%; c) 53.1%; d) 59.9%. 20. The incremental Internal Rate of Return (AIRR) between the Apple and DISCRETE CASH FLOWS AND DISCRETE COMPOUNDING 10.00 % DISCRETE RATE OF INTEREST 1% = 0.1000 k% = 0.1200 (F/P 1%.n) (P/F, 1%,n) (A/P 1%,n) (PIA %n) (A/F1% ) FIA,1%, (A/G,1%,n) (PIG,%.n) 1.1000 1.2100 1.3310 1.4641 1.6105 1.7716 1.9487 2.1436 2.3679 2.5937 2.8531 3.1384 3.4523 3.7975 4.1772 4.5950 5,05451 5.5599 6.1159 .7275 0.9091 0.8264 0.7513 0.6830 0.6209 0.5645 0.5132 0.4665 0.4241 0.3855 0.3505 0.3186 0.2897 0.2633 0.2394 0.2176 0.1978 0.1799 01635 0.1635 0.1486 1.1000 0.5762 0.4021 0.3156 0.2638 0.2296 0.2054 0.1874 0.1736 0.1627 0.1540 0.1468 0.1408 0.1367 0.1315 0.1278 0.1247 0.1219 0.1195 4 40 0.1175 0.9091 1.7355 2.4869 3.1699 3.7908 4.3553 4.8684 5.3349 5.7590 6.1446 6.4951 6.8137 7.1034 7.3667 7.6061 7.8237 .0216 8.2014 8.3649 8.5136 1.0000 1.0000 0.0000 0.0000 0.4762 2.1000 0.4762 0.8264 0.3021 3.3100 0.9366 2.3291 0.2155 4.6410 1.3812 4.3781 0.1638 6.1051 1.8101 6.8618 0.1296 7.7156 2.2236 9.6842 0.1054) 9.4872 2.6216 12.7631 0.0874 11.4359 3.0045 16.0287 0.0736 13.6795 3.3724 19.4215 0.0627 15.9374 3.7255 22.8913 0.0540 18.5312 4.0641 26.3963 0.0468 21.3843 4.3884 29.9012 0.0408 24.5227 4.6988 33.3772 0.035727.9750 4.9955 36.8005 0.0315 31.7725 5.2789 40.1520 0.0278 35.9497 5.5493 43.4164 0.0247 40.5447 5.8071 46.5819 0.0219 45.59926.052649.6395 0.0195 51.1591 6.2861 52.5827 0.0175 57.2750 6.5081 55.4069 (F/G,%, (PICUN ik 0.0000 0.9091 1.0000 1.8347 3.1000 2.7772 6.4100 3.7367 11.0510 4.7138 17.1561 5.7086 24.8717 6.7215 34.3589 7.7528 45.7948 8.8028 59.3742 9.8719 75.3117 10.9605 93.8428 12.0689 115.2271 13.1974 139.7498 14.3465 167.7248 15.5164 199.497316.7076 236.4470 17.9205 275.9917 19.1554 321.5909 20.4128 372.7500 21.6930 PIC I N ) i=k 0.9091 1.8182 2.7273 3.6364 4.5455 5.4545 6.3636 7.2727 8.1818 9.0909 10.0000 10.9091 11.8182 12.7273 13.6364 14.5455 15.4546 16.3636 17.2727 18.1818 8 20 6 An architectural company must replace one of its super computers. The key parameters (all arbitrary values) of the three computers under scrutiny are provided below. Parameters 1. Initial Cost (S) Apple Dell 15,000 22,000 45,000 at EOY1 43,000 at EOY1 increasing by increasing by $5,000 2.0% annually annually thereafter thereafter 41,000 at EOY1 38,000 at EOY1 increasing by decreasing by 1% annually 2% annually thereafter thereafter 0 400 HP 26,000 46,000 at EOY1 increasing by $500 annually thereafter 2. Revenues ($) 3. Operating costs ($) 33,000 at EOY1 increasing by 0.5% annually thereafter 900 4. End-of-life salvage value (9) 5. Useful life (years) 10 EOY = End-of-year Industry standard for backhoes = 4 years MARR = 10%