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Assume compound interest unless otherwise stated. Problems 1 - 1 3 must be solved with factors and / or Excel PV , FV , PMT

Assume compound interest unless otherwise stated. Problems 1-13 must be solved with factors and/or Excel PV, FV, PMT, NPER, or interest rate functions; you may not use NPV for these problems.Formulation (including factors)/ calculations must be shown for credit. For each problem, include a cash flow diagram. If Excel is used for calculations, include the Excel formula(s) used.
11. A automotive manufacturer has a 4-year (now to end of year 4) fixed price contract with a supplier for parts costing $3m per year. Once the contract ends, the cost is expected to rise at 4% per year through year 10. Find the equivalent P and A for these cashflows at i=10%.
B. A investment costs $13,000 at time 0 to implement, but will return $4,000 at end of year 1, $6,000 at end of year 2, and $19,000 at end of year 5. What is the rate of return on this investment? (hint: use IRR function in Excel)
C. An improvement in a production line cost $80,000 to implement at time 0, but will return $20,000/ year in cost savings and new revenues. At $18% interest, how many years will it take until the improvement project breaks even?
D. A project has a complex set of cash flows associated with it, with the net cash flow each years as follows: time 0: -$80k; time 1:$40k; time 2: $200k; time 3: -$100k; time 4-6: -$110k each year; time7: $30k; time 8: $500k. At i=10%, find the equivalent P for this project.

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