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3. Use an external investing rate of 12% and an external borrowing rate of 6%. Compute the rate of return on the investment. Year Cash Flow |- s100 240 2 - 143

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 1CMA

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please solve by hand instead of using excel. thank you!

3. Use an external investing rate of 12% and an external
borrowing rate of 6%. Compute the rate of return on
the investment.
Year Cash Flow
0 - s100
240
1
143
2.

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