Incorrect Question 11 Q4A. Calculate the future value of the positive cash flows, provided below, using the appropriate interest rate (i.e. the first step of the ERR). Assume the company has a MARR of 10% and a reinvestment rate of 12%. Year 1 3 Positive Net Cash Flows $156,054 $182,611 $214.376 664,480.784 Question 12 4B. Calculate the future value of the negative cash flows/initial investment given a MARR of 10.3% per year (i.e. the second step of the ERR). 462,962.3058 Incorrect Question 13 4C. Assume the future value of the positive cash flows, using the appropriate interest rate, is $548,356. Calculate the external rate of return. (note: if your answer is 10.25%, enter "10.25"). 10.7

Incorrect Question 11 Q4A. Calculate the future value of the positive cash flows, provided below, using the appropriate interest rate (i.e. the first step of the ERR). Assume the company has a MARR of 10% and a reinvestment rate of 12%. Year 1 3 Positive Net Cash Flows $156,054 $182,611 $214.376 664,480.784 Question 12 4B. Calculate the future value of the negative cash flows/initial investment given a MARR of 10.3% per year (i.e. the second step of the ERR). 462,962.3058 Incorrect Question 13 4C. Assume the future value of the positive cash flows, using the appropriate interest rate, is $548,356. Calculate the external rate of return. (note: if your answer is 10.25%, enter "10.25"). 10.7

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.12: Uneven, Or Irregular, Cash Flows

Problem 3ST

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n.com Connect (i) Consider the following cash flows: Year Cash Flow 0 -$29,600 1 14,100 2 14,800 3 11,200 a. What is the profitability index for the cash flows if the relevant discount rate is 11 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161 b. What is the profitability index if the discount rate is 16 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. c. What is the profitability index if the discount rate is 23 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. a. Profitability index b. Profitability index c. Profitability index.
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