Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the ERR method to evaluate the economic worth of the diagram shown below. The value of the external reinvestment rate, , is 8% per

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Use the ERR method to evaluate the economic worth of the diagram shown below. The value of the external reinvestment rate, , is 8% per year. The MARR =11% per year. Click the icon to view the diagram for cash flows. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 8% per year. Ciick the icon to viow the interest and annuity table for discreto compounding when the MARR is 11% per year. The ERR of the investment discussed is %. (Round to one decimal place.) More Info \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|c|}{ Discrete Compounding; I=8%} \\ \hline & \multicolumn{2}{|c|}{ Single Payment } & \multicolumn{4}{|c|}{ Uniform Series } \\ \hline & \begin{tabular}{c} Compound \\ Amount \\ Factor \end{tabular} & \begin{tabular}{c} Present \\ Worth Factor \end{tabular} & \begin{tabular}{c} Compound \\ Amount \\ Factor \end{tabular} & \begin{tabular}{l} Present \\ Worth Factor \end{tabular} & \begin{tabular}{l} Sinking \\ Fund \\ Factor \end{tabular} & \begin{tabular}{c} Capital \\ Recovery \\ Factor \end{tabular} \\ \hline N & \begin{tabular}{c} To Find F \\ Given P \\ F/P \end{tabular} & \begin{tabular}{c} To Find P \\ Given F \\ P/F \end{tabular} & \begin{tabular}{c} To Find F \\ Given A \\ F/A \end{tabular} & \begin{tabular}{c} To Find P \\ Given A \\ P/A \end{tabular} & \begin{tabular}{c} To Find A \\ Given F \\ A/F \end{tabular} & \begin{tabular}{c} To Find A \\ Given P \\ A/P \end{tabular} \\ \hline 1 & 1.0800 & 0.9259 & 1.0000 & 0.9259 & 1.0000 & 1.0800 \\ \hline 2 & 1.1664 & 0.8573 & 2.0800 & 1.7833 & 0.4808 & 0.5608 \\ \hline 3 & 1.2597 & 0.7938 & 3.2464 & 2.5771 & 0.3080 & 0.3880 \\ \hline 4 & 1.3605 & 0.7350 & 4.5061 & 3.3121 & 0.2219 & 0.3019 \\ \hline 5 & 1.4693 & 0.6806 & 5.8666 & 3.9927 & 0.1705 & 0.2505 \\ \hline 6 & 1.5869 & 0.6302 & 7,3359 & 4.6229 & 0.1363 & 0.2163 \\ \hline 7 & 1.7138 & 0.5835 & 8.9228 & 5.2064 & 0.1121 & 0.1921 \\ \hline 8 & 1.8509 & 0.5403 & 10.6366 & 5.7466 & 0.0940 & 0.1740 \\ \hline 9 & 1.9990 & 0.5002 & 12.4876 & 6.2469 & 0.0801 & 0.1601 \\ \hline 10 & 2.1589 & 0.4632 & 14.4866 & 6.7101 & 0.0690 & 0.1490 \\ \hline \end{tabular} Print Done s8% per s 11% per Use the ERR method to evaluate the economic worth of the diagram shown below. The value of the external reinvestment rate, , is 8% per year. The MARR =11% per year. Click the icon to view the diagram for cash flows. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 8% per year. Ciick the icon to viow the interest and annuity table for discreto compounding when the MARR is 11% per year. The ERR of the investment discussed is %. (Round to one decimal place.) More Info \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|c|}{ Discrete Compounding; I=8%} \\ \hline & \multicolumn{2}{|c|}{ Single Payment } & \multicolumn{4}{|c|}{ Uniform Series } \\ \hline & \begin{tabular}{c} Compound \\ Amount \\ Factor \end{tabular} & \begin{tabular}{c} Present \\ Worth Factor \end{tabular} & \begin{tabular}{c} Compound \\ Amount \\ Factor \end{tabular} & \begin{tabular}{l} Present \\ Worth Factor \end{tabular} & \begin{tabular}{l} Sinking \\ Fund \\ Factor \end{tabular} & \begin{tabular}{c} Capital \\ Recovery \\ Factor \end{tabular} \\ \hline N & \begin{tabular}{c} To Find F \\ Given P \\ F/P \end{tabular} & \begin{tabular}{c} To Find P \\ Given F \\ P/F \end{tabular} & \begin{tabular}{c} To Find F \\ Given A \\ F/A \end{tabular} & \begin{tabular}{c} To Find P \\ Given A \\ P/A \end{tabular} & \begin{tabular}{c} To Find A \\ Given F \\ A/F \end{tabular} & \begin{tabular}{c} To Find A \\ Given P \\ A/P \end{tabular} \\ \hline 1 & 1.0800 & 0.9259 & 1.0000 & 0.9259 & 1.0000 & 1.0800 \\ \hline 2 & 1.1664 & 0.8573 & 2.0800 & 1.7833 & 0.4808 & 0.5608 \\ \hline 3 & 1.2597 & 0.7938 & 3.2464 & 2.5771 & 0.3080 & 0.3880 \\ \hline 4 & 1.3605 & 0.7350 & 4.5061 & 3.3121 & 0.2219 & 0.3019 \\ \hline 5 & 1.4693 & 0.6806 & 5.8666 & 3.9927 & 0.1705 & 0.2505 \\ \hline 6 & 1.5869 & 0.6302 & 7,3359 & 4.6229 & 0.1363 & 0.2163 \\ \hline 7 & 1.7138 & 0.5835 & 8.9228 & 5.2064 & 0.1121 & 0.1921 \\ \hline 8 & 1.8509 & 0.5403 & 10.6366 & 5.7466 & 0.0940 & 0.1740 \\ \hline 9 & 1.9990 & 0.5002 & 12.4876 & 6.2469 & 0.0801 & 0.1601 \\ \hline 10 & 2.1589 & 0.4632 & 14.4866 & 6.7101 & 0.0690 & 0.1490 \\ \hline \end{tabular} Print Done s8% per s 11% per

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions