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 1 2 4 NCF, $ -40,000 +16,767 -29,000 +25,000 +53,519

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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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
1
2
3
4
NCF, $
-40,000
+16,767
-29,000
+25,000
+53,519
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 1 2 3 4 NCF, $ -40,000 +16,767 -29,000 +25,000 +53,519
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