2. For the net cash flow series shown, find the external rate of return using the ROIC method at an investment rate of 15% per year. Then, determine if the project is justified at MARR= 14%. Year Net Cash Flow, $ +48,000 +20,000 -90,000 1 +5000 3.

2. For the net cash flow series shown, find the external rate of return using the ROIC method at an investment rate of 15% per year. Then, determine if the project is justified at MARR= 14%. Year Net Cash Flow, $ +48,000 +20,000 -90,000 1 +5000 3.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 10P

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2. For the net cash flow series shown, find the external rate of return using the ROIC method at
an investment rate of 15% per year. Then, determine if the project is justified at MARR=
14%.
Year
Net Cash Flow, $
+48,000
+20,000
-90,000
2
3
+5000

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