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: Year 1 4. NCF, $ -40,000 +16,594 -29,000 +25,000 +58,045

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter7: Corporate Valuation And Stock Valuation
Section: Chapter Questions
Problem 11P: Brook Corporation’s free cash flow for the current year (FCF0) was $3.00 million. Its investors...
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QUESTION 4
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:
Year
2
3
4
NCF, $
-40,000
+16,594
-29,000
+25,000
+58,045
Transcribed Image Text:QUESTION 4 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: Year 2 3 4 NCF, $ -40,000 +16,594 -29,000 +25,000 +58,045
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