For the net cash flows shown, find the external rate of return with a reinvestment rate of 15% per year. Year 0 123 3 4 Net Cash Flow, $ 48,000 20,000 -90,000 50,000 -52,000 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. se the manual ROIC method. he FRR is 9/
For the net cash flows shown, find the external rate of return with a reinvestment rate of 15% per year. Year 0 123 3 4 Net Cash Flow, $ 48,000 20,000 -90,000 50,000 -52,000 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. se the manual ROIC method. he FRR is 9/
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:For the net cash flows shown, find the external rate of return with a
reinvestment rate of 15% per year.
Year
0
1
2
234
3
Net Cash Flow, $
48,000
20,000
-90,000
50,000
-52,000
NOTE: This is a multi-part question. Once an answer is submitted, you
will be unable to return to this part.
Use the manual ROIC method.
The ERR is
%.
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