You are on page 1of 20

of return, simply set up the equation and solve for i. Example 1.

6 illustrates
the procedure.

Example 1.6:

used tractor is $ 12,000. Calculate the rate of return for the both tractors.
Solution:
must always consider its cash flow position. Can it handle a $73,500
investment and still have the resources to pay the general operating
expenses?
Example 1.7:
Example 1.8:
Example 1.9:

You might also like