Solution manual engineering economic analysis 9th edition ch07a

... still exists the required external investment in Quarter for Quarter On this basis the Part (b) solution appears to have more realistic assumptions than Part (a) 7A-4 Year Sum Cash Flow -$500... -$118 -$9 PW at 250% -$500 +$571 -$98 -$7 -$34 PW at ∞% -$500 $0 $0 $0 -$500 +$500 -$500 0% 219% i Solution using an external interest rate e* = 6% How much of the +$2,000 at Year must be set aside... Cash Flow -$100 -$188 +$360 +$72 +$6 -$5 Rate of return ≈ 13.6% For further computations, see the solution to Problem 18-4 7A-7 Some money flowing out of the cash flow in Year will be required for