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0 B) For the cash flow below, Year Revenues S Cost S 1 25000 30000 2 15000 7000 3 4000 6000 4 18000 14000 6000
0 B) For the cash flow below, Year Revenues S Cost S 1 25000 30000 2 15000 7000 3 4000 6000 4 18000 14000 6000 3) Are there multiple rates of return values for this cash flow (apply the two rules)? (2 points) 1. Find the extemal rate of retum using the modified rate of retum approach (MIRR), an investment rate of 12% per year, and a borrowing rate of 8%. Assuming that the MARR =10%. (4 points) 2. Is this project justified or not and why? (1 point)
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