operation is shown below. (a) How many possible rate of return values are there for his cash flow series? (b) Find all the rate of return values between 0% and 100%.

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
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am. 412.

7.26 RKI Instruments manufactures a ventila-
tion controller designed for monitoring and
controlling carbon monoxide in parking
garages, boiler rooms, tunnels, etc. The net
cash flow associated with one phase of the
operation is shown below. (a) How many
possible rate of return values are there for
this cash flow series? (b) Find all the rate of
return values between 0% and 100%.
Net Cash Flow, $
- 30,000
20,000
Year
8123
0
2
3
15,000
-2,000
Transcribed Image Text:7.26 RKI Instruments manufactures a ventila- tion controller designed for monitoring and controlling carbon monoxide in parking garages, boiler rooms, tunnels, etc. The net cash flow associated with one phase of the operation is shown below. (a) How many possible rate of return values are there for this cash flow series? (b) Find all the rate of return values between 0% and 100%. Net Cash Flow, $ - 30,000 20,000 Year 8123 0 2 3 15,000 -2,000
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