Do you have an Online Class?

# a) Identify all the simpl

a) Identify all the simple investments.b) Identify all the non simple investments.c) Compute i* for each investment.d)Which project has no rate of return?7.12)a) What is i* for this project?b) If the annual expense increases at a 7% rate over the previous year’s expenses, but the annual income is unchanged, what is the new?c) In part (b), at what annual rate will the annual income have to increase to maintain the same i* obtained in part (a)?7.13)a) Compute i* for each investment.b) Plot the present-worth curve for each project on the same chart, and find the interest rate that makes the two projects equivalent.7.27) You are considering an investment that costs \$2,000. It is expected to have a useful life of three years. You are very confident about the revenues during the first two years but you are unsure about the revenue in year 3. If you hope to make at least a 10% rate of return on your investment (\$2,000), what should be the minimum revenue in year 3?7.30) Consider the cash-flow of a certain project given in the table.If the project’s IRR is 10%,a) Find the value of X.b) Is this project acceptable at MARR = 8%?