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Reconsider the data from problem 62. Data Problem 6.62 EOY Cash Flow EOY Cash Flow EOY Cash Flow 0 -$70,000 7 $14,000 14 $7,000 1
Reconsider the data from problem 62. | |||||||
Data Problem 6.62 | |||||||
EOY | Cash Flow | EOY | Cash Flow | EOY | Cash Flow | ||
0 | -$70,000 | 7 | $14,000 | 14 | $7,000 | ||
1 | $20,000 | 8 | $13,000 | 15 | $6,000 | ||
2 | $19,000 | 9 | $12,000 | 16 | $5,000 | ||
3 | $18,000 | 10 | $11,000 | 17 | $4,000 | ||
4 | $17,000 | 11 | $10,000 | 18 | $3,000 | ||
5 | $16,000 | 12 | $9,000 | 19 | $2,000 | ||
6 | $15,000 | 13 | $8,000 | 20 | $1,000 | ||
Assume MARR is 20 percent per year. | |||||||
Plot a graph of FW versus MARR, where MARR varies from 0 percent to 50 percent by 1 percent increments. FW should be on the y-axis and MARR on the x-axis. | |||||||
Explain the significance of the y-axis intercept. | |||||||
Explain the significance of the x-axis intercept. |
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