Engineering Economics

(13: A third-year college friend of yours opened Mike's Bike Repair Shop when he was a freshman working on a sociology degree. He shared his Net Cash Flow (NCF) gure below for the 3 years, including the $18,000 amount that it took to get started in business. {a} Determine the number of possible rates of return values {ROE}. {b} write the equation that determines ROR using present worth analysis {PW} {c} Using the equation in part {b}, determine the value of Pw assuming an initial guess of ROR =15%. {d} Use Excel software to determine the correct value of EUR Year Net Cash Flow, 5 0 18,000 1 24,000 2 5,ooo 3 4,000