problem in engineering economy - Interest Rate

  • Post reply
No replies
Tue, 06/28/2011 - 02:45
Guest

Here is a problem that I am confused on. I am not sure if my confusion is because the negative sign or because every time i get a negative rate of interest. anyone has any idea on how to approach this type of problems?

For the following cash flow, compute the interest rate at which the $100 cost is equivalent to the subsequent benefits.

Year ،،، Cash Flow
0 ،،،،،،،،،، -100
1 ،،،،،،،،،، 25
2 ،،،،،،،،،، 45
3 ،،،،،،،،،، 45
4 ،،،،،،،،،، 30


 


S P O N S O R E D    L I N K S
Top
  • 701 reads
  • Quote

Post new comment

  • No HTML tags allowed
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
  • You can use BBCode tags in the text. URLs will automatically be converted to links.

More information about formatting options

CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
  __  __   ____    _   ____    _____         
 |  \/  | |___ \  / | | __ )  | ____|  _   _ 
 | |\/| |   __) | | | |  _ \  |  _|   | | | |
 | |  | |  / __/  | | | |_) | | |___  | |_| |
 |_|  |_| |_____| |_| |____/  |_____|  \__, |
                                       |___/
Enter the code depicted in ASCII art style.