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Tate borrowing rate of 11% per year. 1 4,000 Year 4 Cash Flow, $ -3,000 -4,000 3,000 -1,300 4,500 al rate of return is 20.01 %.

Tate borrowing rate of 11% per year. 1 4,000 Year 4 Cash Flow, $ -3,000 -4,000 3,000 -1,300 4,500 al rate of return is 20.01 %.

Essentials Of Investments
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
Section: Chapter Questions
Problem 1PS
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For the net cash flow series, find the external rate of return (EROR) using the MIRR method with an investment rate of 16% per year and a borrowing rate of 11% per year. Year 3 4 6 Net Cash Flow, $ 4,000 -3,000 -4,000 3,000 -1,300 4,500 The external rate of return is 20.01 %.
Transcribed Image Text:For the net cash flow series, find the external rate of return (EROR) using the MIRR method with an investment rate of 16% per year and a borrowing rate of 11% per year. Year 3 4 6 Net Cash Flow, $ 4,000 -3,000 -4,000 3,000 -1,300 4,500 The external rate of return is 20.01 %.
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