Answered: a) How many possible rate of returns b)…

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a) How many possible rate of returns b) If the reinvestment rate c = 15%, find the composite rate of return.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 15PROB

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Question

a) How many possible rate of returns
b) If the reinvestment ratec 15%, find the composite rate of return.
Year
1
Net Cash Flow
-10,000
+15,000
+5,000
-7,000

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