Factors: Annual payment = 6,000,000(A/P,10%,10) = 6,000,000(0.16275) = $976,500 Principal remaining after year 1 = Principal(1 + interest rate) – annual payment = 6,000,000(1.10) – 976,500 = $5,623,500 Interest, year 2 = 5,623,500(0.10) = $562,350 Spreadsheet function: = - FV(10%,1,-976500,6000000)* 0.1 displays $562,350
What will be an ideal response?
(a) Factors and interpolation:
0 = -650,000 + 225,000(P/A,i*,10) + 70,000(P/F,i*,10)
Try 30%: - 650,000 + 225,000(3.0915) + 70,000(0.0725) = $50,663 > 0 too low
Try 35%: - 650,000 + 225,000(2.7150) + 70,000(0.0497) = $-35,646 < 0 too high
Interpolation yields i* = 32.9% per year
(b) Spreadsheet: If cash flows are entered into cells B1:B11
= IRR(B1:B11) displays 32.8%
If RATE is used, a ‘guess’ is necessary. For example
= RATE(10,225000,-650000,70000,,20%) displays 32.8%
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Reactor
The Supreme Court, under Chief Justice Earl Warren, outraged religious conservatives in 1962-1963 when it
A. declared a woman's right to an abortion. B. ruled that prayer and Bible reading in public schools violated the First Amendment. C. prohibited the display of religious symbols in government buildings. D. ruled that parochial schools and parochial students could not receive government funding or any assistance. E. declared that the practice of having congressional chaplains was unconstitutional.
A heating thermostat closes on a(n) ____________________ in temperature.
Fill in the blank(s) with the appropriate word(s).
Tungsten is alloyed with:
A) Lanthanum oxide B) Cerium oxide C) Thorium oxide D) All of the above