Engineering Economy 16th edition by Sullivan Wicks Koelling ISBN 0133439275 9780133439274 Download solution manual at: https://testbankpack.com/p/solution-manual-for-engineering-economy-16th-editionby-sullivan-wicks-koelling-isbn-0133439275-9780133439274/ Download full test bank at : https://testbankpack.com/p/test-bank-for-engineering-economy-16th-edition-bysullivan-wicks-koelling-isbn-0133439275-9780133439274/
Solutions to Chapter 6 Problems 6-1
EOY 0 1 2 3 4 5 6 7 8 9 10 11 12
Alt.B -$5,000 1,480 1,480 1,480 1,480 1,480 -3,520 1,480 1,480 1,480 1,480 1,480 1,480
Alt. A -$3,500 1,255 1,255 1,255 -2,245 1,255 1,255 1,255 -2,245 1,255 1,255 1,255 1,255
Δ(B-A) -$1,500 225 225 225 3,725 225 -4,775 225 3,725 225 225 225 225
According to Descartes' Rule and Nordstrom's Rule, a maximum of three interest rates exist for the above incremental cash flows. In the interval 0%-100%, there is only a single unique internal rate of return, which equals 26%. This can be seen from the following: i PW (B-A) 1% 2,918 10% 1,234 20% 326 ] IRR = 26% 30% -164 ] 40% -463 50% -665 60% -809 70% -917 80% -1001 © 2015 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. This publication is protected by Copyright and written permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise. For information regarding permission(s), write to: Rights and Permissions Department, Pearson Education, Inc., Upper Saddle River, NJ 07458.