Please explain and show all work including equations. Evaluate the following two
ID: 2711348 • Letter: P
Question
Please explain and show all work including equations.
Evaluate the following two cash flow streams using the PP, ROI, NPV, and IRR. Assume a MARR of 8%. Plot a graph showing the relationship between the interest rate and the NPV. Provide an interpretation of your calculations and graph.
0
1
2
3
4
CF Project 1
-$98,024
$74,000
$28,000
$12,000
$8,000
CF Project 2
-$76,000
$26,000
$26,000
$26,000
$26,000
0
1
2
3
4
CF Project 1
-$98,024
$74,000
$28,000
$12,000
$8,000
CF Project 2
-$76,000
$26,000
$26,000
$26,000
$26,000
Explanation / Answer
We applied the paired sample analysis using , where: D = Difference = Appraised value – selling price.
Lower limit = -3.785, and Upper limit = 0.561 (in thousands of dollars)