Year 0 Net Cash Flow, $|-6,000 1 | -5,000 3 -2,000 4 +12,000 +6,000 For these cash flows, it has already been determined there may be more than one positive root . Calculate the EROR using the MIRR method with i-16% and i-8%. HINT: Draw the Cash Flow diagram. You must show the mathematical setup and detailed calculations you used to calculate your EROR to two decimal points by hand. An Excel solution is not sufficient.

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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You have the following cash flows:
Year 0
Net Cash Flow, $ -6,000
1
-5,000
2
+12,000
3
-2,000
+6,000
For these cash flows, it has already been determined there may be more than one positive root .
Calculate the EROR using the MIRR method with i 16% and is-8%. HINT: Draw the Cash Flow
diagram.
You must show the mathematical setup and detailed calculations you used to calculate your EROR to
two decimal points by hand. An Excel solution is not sufficient.
Transcribed Image Text:You have the following cash flows: Year 0 Net Cash Flow, $ -6,000 1 -5,000 2 +12,000 3 -2,000 +6,000 For these cash flows, it has already been determined there may be more than one positive root . Calculate the EROR using the MIRR method with i 16% and is-8%. HINT: Draw the Cash Flow diagram. You must show the mathematical setup and detailed calculations you used to calculate your EROR to two decimal points by hand. An Excel solution is not sufficient.
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