For the nonconventional net cash flow series shown, the external rate of return per year using the MIRR method, with an investment rate of 20% per year and a borrowing rate of 8% per year, is closest to: (a) 10.8% (b) 12.0% (c) 14.8% (d) 16.7% Year 0 1 2 3 4 NCF, $ −40,000 +13,000 −29,000 +25,000 +50,000

Financial And Managerial Accounting
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Author:WARREN, Carl S.
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Chapter26: Capital Investment Analysis
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For the nonconventional net cash flow series
shown, the external rate of return per year using
the MIRR method, with an investment rate of 20%
per year and a borrowing rate of 8% per year, is
closest to:
(a) 10.8% (b) 12.0%
(c) 14.8% (d) 16.7%
Year 0 1 2 3 4
NCF, $ −40,000 +13,000 −29,000 +25,000 +50,000

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