14. 6.71 The net cash flows associated with the manufacture and sale of stabilizer parts for Stratolaunch, the world’s largest airplane with a 385-foot wingspan (longer than an American football field), are shown.

The NCF series indicates the possibility of more than one i* value. If the borrowing rate is 10% per year and the reinvestment rate is 15% per year, the external rate of return per year using the MIRR approach is closest to:

1. 14.8%

2. 15.1%

3. 16.6%

4. 20.3%

Table Summary:

Table divided into 2 columns with the headings marked as: Year and Net Cash Flow in 1,000 dollars.

Year NCF, $1000 0 −50 1 +20 2 +40 3 −15 4 +30