For the nonconventional net cash flow series shown, the external rate of return per year using the MIRR method, with an investment rate of 20% per year and a borrowing rate of 8% per year, is closest to: (a) 10.8% (b) 12.0% (c) 14.8% (d) 16.7% Year 0 1 2 3 4 NCF, $ −40,000 +13,000 −29,000 +25,000 +50,000

For the nonconventional net cash flow series shown, the external rate of return per year using the MIRR method, with an investment rate of 20% per year and a borrowing rate of 8% per year, is closest to: (a) 10.8% (b) 12.0% (c) 14.8% (d) 16.7% Year 0 1 2 3 4 NCF, $ −40,000 +13,000 −29,000 +25,000 +50,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 23E: Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The...

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