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ANSWER QUESTION 8.22 PLEASE. 8.22 Approximate the ROR for Problem 8.18 by interpolation between the results of Problem 8.18(b) and (c). Ans. i* 10.454% 8.18

ANSWER QUESTION 8.22 PLEASE.

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8.22 Approximate the ROR for Problem 8.18 by interpolation between the results of Problem 8.18(b) and (c). Ans. i* 10.454% 8.18 Compute the NPV of an investment with CFo=-$50 000 and CF, = +$12.000 = 1,...,6) f the annual interest rate, compounded annually, is (a) 8%, (b) 10%, (c) 12%, (d) 15%. (e) Interpret the results. Ans.(a) $5473.37; (b) $2262.53; (c)-$663.98; (d) -$4586.74. (e) The investment is not economically acceptable when the interest rate is 12% or greater, in which case the present worth of the cash flows is less than the present worth of the) investment

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