For the net cash flow series, (a) Determine the number of possible i* values using the two
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(a) Determine the number of possible i* values using the two sign tests,
(b) find the EROR using the MIRR method with an investment rate of 20% per year and a borrowing rate of 10% per year, and
(c) Use the MIRR function to find the EROR.
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5 6 2 4 3 Year Net Cash Flow, $+4100 –2000 – 7000 +12,000 –700 +800
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a Rule of signs test up to 4 values Cumulative CF sign test inconclusive since S 0 ...View the full answer
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