1. A new restaurant opens and has the following cash flows. The minimum acceptable rate of return for the owner is 14%. Estimate a single rate of return using HERR and Project Balance Method. Year 1 3 4 7 8. 9 10 Cash Flows (10000s) -250 13 21 -9 33 48 -16 22 32 54 72

1. A new restaurant opens and has the following cash flows. The minimum acceptable rate of return for the owner is 14%. Estimate a single rate of return using HERR and Project Balance Method. Year 1 3 4 7 8. 9 10 Cash Flows (10000s) -250 13 21 -9 33 48 -16 22 32 54 72

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1. A new restaurant opens and has the following cash flows. The minimum acceptable rate
of return for the owner is 14%. Estimate a single rate of return using HERR and Project
Balance Method.
Year
1
4
7
8
9.
10
Cash Flows (10000s) -250
13
21
-9
33
48 -16 22
32
54 72

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