Given the following cash flow for a certain investment and a MARR of 12% per year: 0 1 2 3 4 5 6 End-of-year Cash Flow, P-30, 000 -19, 000 10, 000 10, 000 10, 000 20, 000 20, 000 Determine the external and ineternal rate of returns.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
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Given the following cash flow for a certain investment and a MARR of 12%
per year:
0
1
2
3
4
5
6
End-of-year
Cash Flow, P -30, 000 -19, 000 10, 000 10, 000 10, 000 20, 000 20, 000
Determine the external and ineternal rate of returns.
Transcribed Image Text:Given the following cash flow for a certain investment and a MARR of 12% per year: 0 1 2 3 4 5 6 End-of-year Cash Flow, P -30, 000 -19, 000 10, 000 10, 000 10, 000 20, 000 20, 000 Determine the external and ineternal rate of returns.
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