Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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For the cash flows shown, the correct equation for FW2 using the
a. [10,000(1+ i'' ) + 6000](1.20) - 8000
b. [10,000(1.20) + 6000(1+i'' )](1.20) - 8000
c. [10,000(1.20) + 6000](1.20) - 8000
d. [10,000(1.20) + 6000](1+ i'' ) - 8000
Transcribed Image Text:Year
Cash Flow, $
10,000
1
6,000
2
-8,000
3
-19,000
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- Problem 07.037 - MIRR calculation For the net cash flow series, find the external rate of return (EROR) using the MIRR method with an investment rate of 20% per year and a borrowing rate of 10% per year. Year Net Cash Flow, $ The external rate of return is 1 4,000 2 -3,000 3 -7,000 4 12,000 5 -700arrow_forwardCompute the payback perlod for an Investment with the following net cash flows. (Round your answer to one decimal place.) Net Cash Flows per Year Cumulative Net Cash Flows $ (101,000) $ (101,000) (90,900) (70,800) Year Initial investment 1. 2. 3. 5. 6. Payback period 10,100 20,100 20,100 26,640 40,100 40,100 years (50,700) (24,060) 16,040 56,140arrow_forwardGiven the cash flow diagram, what is the uniform annual equivalent value at the end of each year for six years?arrow_forward
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