a) Suppose that the Metallurgical Engineer pays $6000, at the begin of the year, and at the end of year he receives the check for $7200. Find the annual rate of return for the investment?
b) Suppose that Metallurgical Engineer pays money at Time 0 and accepts smaller payments spread over next ten years. If returned amounts are $1200 at end of each of the first four years, and he gets $1325 at the end of next 6 years, sketch the complete cash flow diagram for all cash flows for the investment. Add the dashed arrow which would represent monetary equivalent at the end of ten years.