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[ 12 pts. ] Consider the following table in order to answer the following questions assuming minimum attractive rate of return is 9 % per
[ 12 pts. ] Consider the following table in order to answer the following questions assuming minimum attractive rate of return is 9 % per year: Year Outflow ($) Inflow (S) Net Cash Flow () Cumulative Cash Flow (5) 0 - 20,000 0 1 - 2,500 +10,000 Fir 2 2 -12,500 +10,000 Tir 3 -2,500 +10,000 4 -7,500 +20,000 1. [ 4 pts. ] Filling up blank cells in the table, the cumulative cash flow at the end of year 4 is closest to: +$5,000 +$10,000 +$ 17,500 +$7,500 2. [ 4 pts. ] Filling up blank cells in the table, and considering Descartes' rule of signs, the maximum number of possible rate of return values for the above cash flow is closest to: O1 O 3 O2 3. [ 4 pts. ] Assuming i = 12% per year and i = 996 per year, using MIRR method what should be the EROR i'% per year is closest to: O 8.30% 9.15% O 11.25% O 12.70% [ 12 pts. ] Consider the following table in order to answer the following questions assuming minimum attractive rate of return is 9 % per year: Year Outflow ($) Inflow (S) Net Cash Flow () Cumulative Cash Flow (5) 0 - 20,000 0 1 - 2,500 +10,000 Fir 2 2 -12,500 +10,000 Tir 3 -2,500 +10,000 4 -7,500 +20,000 1. [ 4 pts. ] Filling up blank cells in the table, the cumulative cash flow at the end of year 4 is closest to: +$5,000 +$10,000 +$ 17,500 +$7,500 2. [ 4 pts. ] Filling up blank cells in the table, and considering Descartes' rule of signs, the maximum number of possible rate of return values for the above cash flow is closest to: O1 O 3 O2 3. [ 4 pts. ] Assuming i = 12% per year and i = 996 per year, using MIRR method what should be the EROR i'% per year is closest to: O 8.30% 9.15% O 11.25% O 12.70%
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