Harley worked for many years to save enough money to start his own residential landscape design business. The net cash flows shown are those he recorded for the first 6 years as his own boss. Find the external rate of return using the modified rate of return approach with a reinvestment rate of 15% per year and a borrowing rate of 8%. Additionally, after using the procedure, use the MIRR function to confirm your answer. Year NCF, $ -9,000 1 4,100 4 5 12,000 700 2 -3,400 -7,000 750 The external rate of return is % per year. The spreadsheet function is =RATE(6,,-17472,25672) ♥
Harley worked for many years to save enough money to start his own residential landscape design business. The net cash flows shown are those he recorded for the first 6 years as his own boss. Find the external rate of return using the modified rate of return approach with a reinvestment rate of 15% per year and a borrowing rate of 8%. Additionally, after using the procedure, use the MIRR function to confirm your answer. Year NCF, $ -9,000 1 4,100 4 5 12,000 700 2 -3,400 -7,000 750 The external rate of return is % per year. The spreadsheet function is =RATE(6,,-17472,25672) ♥
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 18EB: Garnette Corp is considering the purchase of a new machine that will cost $342,000 and provide the...
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