2. Discounted Payback (DCPB) and IRR evaluations. Use the cash flow situation (table below) to answer. a. Determine the DCPB based on a MARR rate of 4.0% b. Determine the IRR Year Cash Flow (in $1000's) 0 1 -1250 +350 2 +300 3 +250 4 +200 5 +150 6 +100 7 +50

Personal Finance
13th Edition
ISBN:9781337669214
Author:GARMAN
Publisher:GARMAN
Chapter16: Real Estate And High-risk Investments
Section: Chapter Questions
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2.
Discounted Payback (DCPB) and IRR evaluations.
Use the cash flow situation (table below) to answer.
a. Determine the DCPB based on a MARR rate of 4.0%
b. Determine the IRR
Year
Cash Flow
(in $1000's)
0
-1250
1
+350
2
3
+300 +250
4
+200
5
+150
6
+100
7
+50
Transcribed Image Text:2. Discounted Payback (DCPB) and IRR evaluations. Use the cash flow situation (table below) to answer. a. Determine the DCPB based on a MARR rate of 4.0% b. Determine the IRR Year Cash Flow (in $1000's) 0 -1250 1 +350 2 3 +300 +250 4 +200 5 +150 6 +100 7 +50
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