Is there anyone kind enough to solve this problem for me? I have my semester final ahead, and struggling with this problem. I am attaching my understanding too.
ps: also calculating for 30 years seems confusing
.IMG_2124.jpg IMG_2125.jpg
Is there anyone kind enough to solve this problem for me? I have my semester final ahead, and struggling with this problem. I am attaching my understanding too.
ps: also calculating for 30 years seems confusing
.IMG_2124.jpg IMG_2125.jpg
Last edited by Tayeeba; 12-05-2017 at 02:22 AM.
you are right about the numbers of model A, for model B: first cost $40k, salvage value $2k, annual profet: $10k+$1k/year increase, life (years): 10.
model C: first cost $10k, salvage $0, annual profit $9k, life (years): 5.
i understand what you did for model A except the line PV of X over 5 years. Here you calculated the Future value of $15k for 5 years right? Why is that when the problem says $15k annuity for 10 years, (what you did the line before PV of X over 5 years). Please help me here. Youd did 15 K annuity for 10 years, but why again 15k future value for 5years?
also i need to convert every model’s life in 30 years right to do a fair comparison. So how can i find the value of 30 years for model A?
i just have these two problems with model A, Once understood, I can do B and C by myself.
thanks again Denis.
also can you please suggest me any YouTube video to get clear idea about marr,irr and err. I have read my textbooks but still have many confusions
Hey, thanks I got it clearly now.1CE3FD6D-B379-44DF-B7B1-855BDF1A4215.jpg
also found the the value in 30 years too. It’s the value in 15 years+future value over next 15 years.
thanks a ton for helping me out.
hello Denis, i did exactly in your way, but got different answer, will you please cross check my answer?0CE13816-11FD-4CF7-AD33-360F3B1B9421.jpg
Last edited by Tayeeba; 12-06-2017 at 01:49 PM.
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