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#1 Given: A project with an initial cost of $25,000 promises to return $4,000; $9,000; $12,000; $13,000; and $15,000 in years 1 through 5
#1 Given: A project with an initial cost of $25,000 promises to return $4,000; $9,000; $12,000; $13,000; and $15,000 in years 1 through 5 respectively, and nothing after that. a. Draw the cash flow diagram for this project. b. What is the ROR for this project? [Estimate the ROR as a % with one decimal place: e.g., 42.7%]. Use the interpolation method with two iterations minimum. Show your work. c. What is the ROI for this investment?
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Horngrens Financial and Managerial Accounting
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
4th Edition
978-0133251241, 9780133427516, 133251241, 013342751X, 978-0133255584
