3. A company is considering a project with the following cash flows. The external interest rate is 5%. Is this a good investment based on rate of return analysis and a MARR of 8%? Give the exact ROR, interpolate if necessary. Year Cash Flow -$50,000 -$30,000 $30,000 -$10,000 $80,000 3 4
3. A company is considering a project with the following cash flows. The external interest rate is 5%. Is this a good investment based on rate of return analysis and a MARR of 8%? Give the exact ROR, interpolate if necessary. Year Cash Flow -$50,000 -$30,000 $30,000 -$10,000 $80,000 3 4
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
Section: Chapter Questions
Problem 3CMA
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Question
![3.
A company is considering a project with the following cash flows. The external
interest rate is 5%. Is this a good investment based on rate of return analysis and a MARR of
8%? Give the exact ROR, interpolate if necessary.
Year Cash Flow
-$50,000
-$30,000
$30,000
-$10,000
$80,000
1
4
I](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcac2390c-bdd6-4910-b569-1df15b0fc35b%2F055ca983-0a76-49c3-b2af-78cc73cf2b80%2Fnw4dy4b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3.
A company is considering a project with the following cash flows. The external
interest rate is 5%. Is this a good investment based on rate of return analysis and a MARR of
8%? Give the exact ROR, interpolate if necessary.
Year Cash Flow
-$50,000
-$30,000
$30,000
-$10,000
$80,000
1
4
I
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