Assume a series of cash flows as shown for an ongoing project. The negative net cash flow in year 4 is the result of a major alteration to the project. Compute the rate of return values for the project and create a graph of the Present Worth (y-axis) versus rate of return (x-axis) for the 5 ROR results. Year Net Cash Flow 1 $200 2 100 3 50 4 -1800 5 600 6 500 7 400 8 300 9 200 10 100
Assume a series of cash flows as shown for an ongoing project. The negative net cash flow in year 4 is the result of a major alteration to the project. Compute the rate of return values for the project and create a graph of the Present Worth (y-axis) versus rate of return (x-axis) for the 5 ROR results. Year Net Cash Flow 1 $200 2 100 3 50 4 -1800 5 600 6 500 7 400 8 300 9 200 10 100
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 2MAD
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