SHOW FUNCTrEGNAL NotTTONTASe VALAESTE FOR THE OPTIONS BELOW MARR -8% AND TOTAL INUESTMar PROF FRA SCN LI FE IS SIX YCARS /ST COST: 2000 3o00 4ou0 1010 PAYMENTS 1:425 4:1705 2:0 3:2600 S: 2/25 6:2550 2:eso 3: 1115 SALVAGE 3'1275 200 250 w/ a) SOLUE Foe sesr OPTESN USENG THE GRAPHECAL METHOD b) TO THE CLUSEST TWO SNTEREST RATES I A.) INDEVEOU AL ROR's For O (O ) INCREMEHTAL ROR BETWEEN THEM .WHECH IS BEST: c):) FIND THE BENEFST COST RATEOS FOR O AND O 14) PIND THE SNCREMENTAL GENEFET CO RATEO OETGEEN THEM. UHICH BEST? d) FIND THE PAYGACve FuR A), G), AND O. 2) IF THE No MENAL INTEREST RATE Es 87, compouNDeD DAELY, WHAT IS TH EFFeCTsVc ENTEnESst? 3) WHAT ES THE CAPITALITED THE INUESTmeNT OF AT THE Rcrlt ? i59. se 125 K N= 10 YEARS A) FEND DEPRE CTAON BY STRATGHT UENC. DOUGLE DELLENING B ALANCE 5) Fon THE CASH FLUW BEWW, FIND e: 30 30 20 =107. P=? NEXT PAGE SHOW FUNCTrEGNAL NotTTONTASe VALAESTE FOR THE OPTIONS BELOW MARR -8% AND TOTAL INUESTMar PROF FRA SCN LI FE IS SIX YCARS /ST COST: 2000 3o00 4ou0 1010 PAYMENTS 1:425 4:1705 2:0 3:2600 S: 2/25 6:2550 2:eso 3: 1115 SALVAGE 3'1275 200 250 w/ a) SOLUE Foe sesr OPTESN USENG THE GRAPHECAL METHOD b) TO THE CLUSEST TWO SNTEREST RATES I A.) INDEVEOU AL ROR's For O (O ) INCREMEHTAL ROR BETWEEN THEM .WHECH IS BEST: c):) FIND THE BENEFST COST RATEOS FOR O AND O 14) PIND THE SNCREMENTAL GENEFET CO RATEO OETGEEN THEM. UHICH BEST? d) FIND THE PAYGACve FuR A), G), AND O. 2) IF THE No MENAL INTEREST RATE Es 87, compouNDeD DAELY, WHAT IS TH EFFeCTsVc ENTEnESst? 3) WHAT ES THE CAPITALITED THE INUESTmeNT OF AT THE Rcrlt ? i59. se 125 K N= 10 YEARS A) FEND DEPRE CTAON BY STRATGHT UENC. DOUGLE DELLENING B ALANCE 5) Fon THE CASH FLUW BEWW, FIND e: 30 30 20 =107. P=? NEXT PAGE