Problem CEO Mcintosh is considering an investment option: (20 points the CEO decides to the other ownedosh by cat the NPV of the cash flow stream vename of and plots the r e ally the point where this plot cross the waithe . The coon he plotsis Note: In the above c on represents gainst you mu u r money by this is what represents in the above equation this was done in woll h a Unfortunately, this plot crosses the X as a places so thawltiple possible rates of return. These can be seen in the graph, though the exact values show up in the link. The serves are approvately 6-149.0.24, 1.12). The CEO wants to understand what each of these numbers meas. He knows that since EIN 4354 Econ xis (1) he were to invest $1 and get an interest rate of his money after a single period would become so for the first rate -149. This means his $1 of money assets would become $1.49 of debt. Similarly, if he waits another period, it would turn into $2.22 of assets. The CEO knows this is impossible, otherwise he could get rid of all is com deb by investing it here for 1 period. Real interest rates either shrink or grow the investment, they canno t leo . Thus, he knows the fitrate can be ignored as a result of the mathematical model i ng with real for the second rate 0.24 he invests $1 at time his dollar would become 24 cents after 1 period, and continue shining on and on. Although this is not a good rate for investment, he he has to take it because the sumber does have a rec r eation. For the state the invests Statime he would have $1. 12 after period and it would continue growing on and on This is a good foran investment, he hope this is what the true beste ut e nows that the multiple cow due to there being give cash flow stated in that they are generally hard to deal with, she has hired as an analys e out what has the simples The first notices that he could always tur i le negative cash flows into a gent e cash flow by adding the native chesther that much money and Just holding onto t he needs to make the payments Calculate the of the above cash flow stra tegie cash flow are moved to year(30 points The CEO w hat he doesn't have to hold on to the money he can find a However, he's not sure how well this investment will have to do to make the whole plan worth i ves for the company is cake what the temporary funds interest rate a ective will have to b e what funderest makes the overalt (10 ) CEO Mcintosh is considering an investment option: (20 points) c to ide whether e does this if only with a f o accept the CEO decides to calculate the IRR of the cash flow str the NPVM of the cash flow event of retur and plots ther e the point where this plot cross the The e glis ( e. When you g multiply your money by represents in the above e t you this is what to this was done in wolfram Unfortunately, this plot crosses the places! So, it has mulle possible rates of turn. These can be seen in the graphi, though the exact values show up in the link. The reres are apore (-149.0.24, 1.12) The CEO wants to understand what each of these numbers mean. He knows that since EIN 4354 Eng Econ 2019 is er if he were to invest $1 and get an interest rate of money or a single period would become se for the first rate, le-149, this means this $1 of money assets would become $1.49 debt. Similarly, the wait other period, it would tum e 5222 of The CEO now this is impossible, otherwise he could get rid of all his company's debt by investing there for period Real interest rates the growth investment, they cannotati c Thus, he knows the first rate can be ignored as a result of the mathematical model motining up with reality for the second at 10.241. heinvest $1 time his dollar would become t he period and comme Wiking on and on. Although this is not a good rate for investment, he knows he has to l y because the number does have a res p ection for the last 12 hent me he would have $112 period would co w gon and on the vestment, he hope this is what the true interest t h at the urdue to there being mu g ative cash flow the section that they are generally hard to deal with head you to get what she The cloisotices that he could turn mi c h flow Cashflow by adding the techos he c ho thong on the needs to the p a th of the w ho stream all the tive cash flow we moved to 0.00 pm The CEO os that he doesn't have to hold on to the money ameheanna temporary fund s and then withdraw money to pay for the n e w s However, he's not sure how well this investment will have to do to make the whole worthwhile. If the minimum attractive Interest rate for the company is 10%.cate what the temporary fund's interest rate a c tive will have to be what und interest makes the overall project have an of 10 points) Problem CEO Mcintosh is considering an investment option: (20 points the CEO decides to the other ownedosh by cat the NPV of the cash flow stream vename of and plots the r e ally the point where this plot cross the waithe . The coon he plotsis Note: In the above c on represents gainst you mu u r money by this is what represents in the above equation this was done in woll h a Unfortunately, this plot crosses the X as a places so thawltiple possible rates of return. These can be seen in the graph, though the exact values show up in the link. The serves are approvately 6-149.0.24, 1.12). The CEO wants to understand what each of these numbers meas. He knows that since EIN 4354 Econ xis (1) he were to invest $1 and get an interest rate of his money after a single period would become so for the first rate -149. This means his $1 of money assets would become $1.49 of debt. Similarly, if he waits another period, it would turn into $2.22 of assets. The CEO knows this is impossible, otherwise he could get rid of all is com deb by investing it here for 1 period. Real interest rates either shrink or grow the investment, they canno t leo . Thus, he knows the fitrate can be ignored as a result of the mathematical model i ng with real for the second rate 0.24 he invests $1 at time his dollar would become 24 cents after 1 period, and continue shining on and on. Although this is not a good rate for investment, he he has to take it because the sumber does have a rec r eation. For the state the invests Statime he would have $1. 12 after period and it would continue growing on and on This is a good foran investment, he hope this is what the true beste ut e nows that the multiple cow due to there being give cash flow stated in that they are generally hard to deal with, she has hired as an analys e out what has the simples The first notices that he could always tur i le negative cash flows into a gent e cash flow by adding the native chesther that much money and Just holding onto t he needs to make the payments Calculate the of the above cash flow stra tegie cash flow are moved to year(30 points The CEO w hat he doesn't have to hold on to the money he can find a However, he's not sure how well this investment will have to do to make the whole plan worth i ves for the company is cake what the temporary funds interest rate a ective will have to b e what funderest makes the overalt (10 ) CEO Mcintosh is considering an investment option: (20 points) c to ide whether e does this if only with a f o accept the CEO decides to calculate the IRR of the cash flow str the NPVM of the cash flow event of retur and plots ther e the point where this plot cross the The e glis ( e. When you g multiply your money by represents in the above e t you this is what to this was done in wolfram Unfortunately, this plot crosses the places! So, it has mulle possible rates of turn. These can be seen in the graphi, though the exact values show up in the link. The reres are apore (-149.0.24, 1.12) The CEO wants to understand what each of these numbers mean. He knows that since EIN 4354 Eng Econ 2019 is er if he were to invest $1 and get an interest rate of money or a single period would become se for the first rate, le-149, this means this $1 of money assets would become $1.49 debt. Similarly, the wait other period, it would tum e 5222 of The CEO now this is impossible, otherwise he could get rid of all his company's debt by investing there for period Real interest rates the growth investment, they cannotati c Thus, he knows the first rate can be ignored as a result of the mathematical model motining up with reality for the second at 10.241. heinvest $1 time his dollar would become t he period and comme Wiking on and on. Although this is not a good rate for investment, he knows he has to l y because the number does have a res p ection for the last 12 hent me he would have $112 period would co w gon and on the vestment, he hope this is what the true interest t h at the urdue to there being mu g ative cash flow the section that they are generally hard to deal with head you to get what she The cloisotices that he could turn mi c h flow Cashflow by adding the techos he c ho thong on the needs to the p a th of the w ho stream all the tive cash flow we moved to 0.00 pm The CEO os that he doesn't have to hold on to the money ameheanna temporary fund s and then withdraw money to pay for the n e w s However, he's not sure how well this investment will have to do to make the whole worthwhile. If the minimum attractive Interest rate for the company is 10%.cate what the temporary fund's interest rate a c tive will have to be what und interest makes the overall project have an of 10 points)