23. Graph the PW(i) as a function of i for each cash flow shown. The range of in- terest-rate values for which these graphs should be drawn extends from 0% to 50%. From the graphs determine the internal rates of return for each cash flow. End of Year 2 4 -$ 3,000 10,000 2,000 5,000 500 $ 7,500 50,000 $ 0 24,024 20,000 -$ 4,620 93,500 77,500 20,000 10,725 19,500 1,800 6,000 1,000 25,150 2,160 1,800 2,000 864 6,000 4,000 6,000 3,600 3,000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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36
23. Graph the PW(i) as a function of i for each cash flow shown. The range of in-
terest-rate values for which these graphs should be drawn extends from 0% to
50%. From the graphs determine the internal rates of return for each cash flow.
End of Year
1
3
4
$ 7,500
50,000
-$ 4,620
- 93,500
(b)
(c)
(d)
-$ 3,000
- 10,000
2,000
5,000
$ 0
77,500
20,000
10,725
2$
24,024
- 20,000
19,500
1,800
6,000
1,000
25,150
2,160
1,800
2,000
500
864
6,000
4,000
6,000
3,600
(g)
3,000
Transcribed Image Text:36 23. Graph the PW(i) as a function of i for each cash flow shown. The range of in- terest-rate values for which these graphs should be drawn extends from 0% to 50%. From the graphs determine the internal rates of return for each cash flow. End of Year 1 3 4 $ 7,500 50,000 -$ 4,620 - 93,500 (b) (c) (d) -$ 3,000 - 10,000 2,000 5,000 $ 0 77,500 20,000 10,725 2$ 24,024 - 20,000 19,500 1,800 6,000 1,000 25,150 2,160 1,800 2,000 500 864 6,000 4,000 6,000 3,600 (g) 3,000
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