TEASAY IE-203 COMPOSITE EXAM (an-2018) Pleme show all your work and give your answers correct to 2 decimals. Question-1 (35 pts, 15:20) The innation cate is 10% per year and real annualinterest rate is also 10% in a bank. If you sorrow 100 000 & for 20 years what will be the amount of the payments. If it will be paid back with 5 equal installments at the end of each 4 years? b) If the payments in even numbered years is twice of the payments of odd numbered years? (Equal payments in odd years, and equal payments in even years, first payment is in 2021). Question-2 (30 pts, 15+15) Assume that you bought a new car for 300.000 & and by renting the car, you start to receive monthly earnings which are paid at the beginning of each month. The first revenue is 2.000 which is earned today and increase by 100 & each month for the next 10 years, a) If the interest rate is 10%, calculate the discounted payback period? b) If the salvage value of the car is 100.000 after 10 years, calculate the depreciation in the 8th year using shifted depreciation methods (start with double declining balance and switch to straight line when necessary)? (DDB formula: Dt = dB(1 - d)t-1 = dBVt-1) Question-3 (25 pts) there are 3 mutually exclusive projects and MARR is 10%. Using incremental OR analysis, select the project (s) to invest. B C Initial Cost 150.000 00.000 200.000 Inflows/year 45.000 90.000 70.000 Outflows/year Salvage 20.000 40.000 25.000 Life 50.000 120.000 70.000 10 10 10 le Present Value of an Annuity Future Value of an Annuity (1+in PV=Ax ( 1-(1+1)- FV = A X (1+1) - 1)