Engineering Economy, 8th edition, problem 7.55

You need to determine i* per year for the cash flows shown below. Since you have a new boss, you decided to perform a thorough analysis.

Do the following:

(a) Use a spreadsheet to find i*.

(b) Develop two charts on the spreadsheet: a column chart that plots cash flows versus year, and a scatter chart showing PW values versus a range of i values, one of which is i*. (Hint: Use Figure 74 as a guide.)

(c) You were told when handed the estimates that the rate of return was about 25%. Determine the cash flows for years 2, 3, and 4 that are necessary to realize an i* of 25% per year, if they remain in the same proportion to each other as initially estimated.

Thanks in advance!!!

Year 0 3 4 Cash Flow,ST 0 -80,000 9000 70,000 30,000