ear Flow 0 -5000 1 2000 2 4000 3 -1500 4 3000 5 4000 6 -6000 7 9000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 15MC: The IRR method assumes that cash flows are reinvested at _________. A. the internal rate of return...
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Determine the ERR (External rate of return) of the cash flows if external rate (e) is given as %12.
Cash
Flow
Year
0
1
2
3
4
5
6
7
Select one:
a.0.228861
b.0.204146
c.0.245007
d.0.274516
e.0.181262
f.0.168017
g.0.19667
h.0.264278
-5000
2000
4000
-1500
3000
4000
-6000
9000
Transcribed Image Text:Determine the ERR (External rate of return) of the cash flows if external rate (e) is given as %12. Cash Flow Year 0 1 2 3 4 5 6 7 Select one: a.0.228861 b.0.204146 c.0.245007 d.0.274516 e.0.181262 f.0.168017 g.0.19667 h.0.264278 -5000 2000 4000 -1500 3000 4000 -6000 9000
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