or the nonconventional net cash flow series shown, the external rate of return per year using the MIRR method, with an inve

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter14: Multinational Capital Budgeting
Section: Chapter Questions
Problem 3IEE
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QUESTION 3
For the nonconventional net cash flow series shown, the external rate of return per year using the MIRR method, with an investment rate of 20% per year and a borrowing rate of 8% per year, is closest to:
Year
NCF, S
-40,000
+17,007
-29,000
+25,000
+55,968
QUESTION 4
For the net cash flow and cumulative cash flows shown, the value of x is nearest:
Year
1
2
3
4
5
Net Cash Flow, S
CCF, S
O $16,000
O $-16,000
O $-8,000
O $41,000
+13,000
-29,000
-16,000
-25,000
50,000
+13,000
-41.000
+9000
+1000
Transcribed Image Text:QUESTION 3 For the nonconventional net cash flow series shown, the external rate of return per year using the MIRR method, with an investment rate of 20% per year and a borrowing rate of 8% per year, is closest to: Year NCF, S -40,000 +17,007 -29,000 +25,000 +55,968 QUESTION 4 For the net cash flow and cumulative cash flows shown, the value of x is nearest: Year 1 2 3 4 5 Net Cash Flow, S CCF, S O $16,000 O $-16,000 O $-8,000 O $41,000 +13,000 -29,000 -16,000 -25,000 50,000 +13,000 -41.000 +9000 +1000
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