For the net cash flow series, find the external rate of return (EROR) using the MIRR method with an investment rate of 25% per year and a borrowing rate of 11% per year. What is the external rate of return?

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter14: Security Structures And Determining Enterprise Values
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For the net cash flow series, find the external rate of return (EROR) using the MIRR method with an investment rate of 25% per year and a borrowing rate of 11% per year.

What is the external rate of return?

Year
1
2
3
4
6
Net Cash Flow, $
4.000
-5,000
-3,000
6,000
-800
3,400
Transcribed Image Text:Year 1 2 3 4 6 Net Cash Flow, $ 4.000 -5,000 -3,000 6,000 -800 3,400
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