Ñ5 For the net cash flow series, find the external rate of return (EROR) using the MIRR method with an investment rate of 16% peryear and a borrowing rate of 11% per year.Year346Net Cash Flow, $4,000-3,000-4,0003,000-1,3004,500The external rate of return is20.01 %.

MIRR is modified internal rate of return.

Answered: Tate borrowing rate of 11% per year. 1…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 22E

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Tate borrowing rate of 11% per year. 1 4,000 Year 4 Cash Flow, $ -3,000 -4,000 3,000 -1,300 4,500 al rate of return is 20.01 %.