According to Descartes' rule of signs, how many possible i values are there for the cash flows shown?(a) Find the external rate of return using the modified rate of return (MIRR approach), at an investment rate of 14% per year, and a borrowing rate of 10%. (b) Determine the external rate of return
According to Descartes' rule of signs, how many possible i values are there for the cash flows shown?(a) Find the external rate of return using the modified rate of return (MIRR approach), at an investment rate of 14% per year, and a borrowing rate of 10%. (b) Determine the external rate of return
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
Section: Chapter Questions
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Transcribed Image Text:3. According to Descartes' rule of signs, how many possible i* values are there for the cash flows
shown?(a) Find the external rate of return using the modified rate of return (MIRR approach), at an
investment rate of 14% per vear, and a borrowing rate of 10%. (b) Determine the external rate of return
using the ROIC approach
Year
2
3
4
6
NCF, $-9000 +4100 -2000 -7000 +12,000 +700 +800
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