ECO 1192 Study Guide - Final Guide: Alpha Beta Gamma, Airborne Early Warning And Control, Alpha Beta

• School: University of Ottawa
• Department: Economics
• Course: ECO 1192
• Professor: Claude Théorêt

Document Summary

The purpose of this document is to provide detailed calculations for a range of decision-making criteria to determine the. Validity (acceptability) of projects and best among competing alternatives. The incremental internal rate of return method (irr) The incremental external rate of return method (err) 30 (f/p,i%,n) (p/f,i%,n) (a/p,i%,n) (p/a,i%,n) (a/f,i%,n) (f/a,i%,n) (a/g,i%,n) The exit company is studying the purchase of a new palletizer. The parameters of the three palletizers under review are shown below. 5,000 value ($: useful life (years, industry standard. Solve for i*%. (use excel or equivalent or a financial calculator) i*% = 16. 40% Solve for i*%. (use excel or equivalent or a financial calculator) i*% = 15. 28% Set ae (cash outflows) = ae (cash inflows) Set pw (cash outflows) = pw (cash inflows) Solve for i*%. (use excel or equivalent or a financial calculator) Solve directly for i*% (= %) i*% = 13. 61% Solve directly for i*% (= %) i*% = 12. 52%