For the net cash flow series, (a) determine the number of possible i* values using the two sign tests, (b) find the EROR using the MIRR method with an investment rate of 20% per year and a b rate of 10% per year, and (c) use the MIRR
For the net cash flow series, (a) determine the number of possible i* values using the two sign tests, (b) find the EROR using the MIRR method with an investment rate of 20% per year and a b rate of 10% per year, and (c) use the MIRR
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:For the net cash flow series, (a) determine the
number of possible i* values using the two sign
tests, (b) find the EROR using the MIRR method
with an investment rate of 20% per year and a borrowing
rate of 10% per year, and (c) use the MIRR
function to find the EROR.
Year 123456
Net Cash Flow, $ +4100-2000-7000 +12,000-700 +800
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