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Problem 1. Consider the example in class for alternatives k and j: Alternative j Alternative k Time Outflow Inflow Net flow Outflow Inflow Net flow
Problem 1. Consider the example in class for alternatives k and j: Alternative j Alternative k Time Outflow Inflow Net flow Outflow Inflow Net flow 0 1000 0 2000 0 2000 2475 5000 5915 2 1000 1475 6000 6915 500 975 7000 7915 In class we demonstrated the calculation using incremental analysis for PVk-. Apply the same incremental analysis method to derive the other results. Criterion Value for increment PV $94 (done in class) FV $125 AE $38 PB $125 IRR 15% ARR 14%
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