Year Cash Flow, $1,000 2000 1 1200 -4000 3 -3000 4 2000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A new advertising campaign by a company that manufactures products that rely on biometrics, surveillance, and satellite technologies resulted in the cash flows shown (in $1000 units). Develop one spreadsheet that displays the following: external rate of return using both the ROIC method with ir = 30% per year, and the modified ROR approach with ir = 30% and ib = 10% per year; and the unique or multiple internal rate of return value(s) indicated by the two multiple-root sign tests.

Year
Cash Flow, $1,000
2000
1
1200
-4000
3
-3000
4
2000
Transcribed Image Text:Year Cash Flow, $1,000 2000 1 1200 -4000 3 -3000 4 2000
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