Compute the rate of return represented by the cash flow. Year Cash Flow -S20, 000 6, 000 6, 500 3 7, 000 4. 7, 500 2.

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
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Compute the rate of return represented by the cash flow.
Year Cash Flow
0.
-$20, 000
6, 000
6, 500
3
7, 000
4
7, 500
Select one:
O a.
12.66%
O b. 8.66%
O c. 14.66%
d. 10.66%
Transcribed Image Text:Compute the rate of return represented by the cash flow. Year Cash Flow 0. -$20, 000 6, 000 6, 500 3 7, 000 4 7, 500 Select one: O a. 12.66% O b. 8.66% O c. 14.66% d. 10.66%
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