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2. Calculate the discounted cash flow rate of return (DCFR) (or IRR) and the net present value (t=0) at a 10% interest rate for each

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2. Calculate the discounted cash flow rate of return (DCFR) (or IRR) and the net present value (t=0) at a 10% interest rate for each of the four cash flows (parentheses around values indicate negative amounts). Using a spreadsheet is acceptable and recommended. (a) (b) (c) (d) Year Cash flow Year Cash flow Year Cash flow Year Cash flow -2 $(10,000,000) 0 $(10,000,000) -2 $(50,000,000) -2 $(5,000,000) -1 $(50,000,000) 1 $(50,000,000) -1 $(50,000,000) -1 $(15,000,000) 0 $(50,000,000) 2 $(50,000,000) 0 $(10,000,000) O $(15,000,000) 1 $ 25,000,000 3 $ 25,000,000 1 $ 25,000,000 1 $ 7,500,000 2 $ 50,000,000 4 $ 50,000,000 2 $ 50,000,000 2 $ 15,000,000 3 $ 50,000,000 5 $ 50,000,000 3 $ 50,000,000 3 $ 15,000,000 4 $ 50,000,000 6 $ 50,000,000 4 $ 50,000,000 4 $ 15,000,000 5 $ 50,000,000 7 $ 50,000,000 5 $ 50,000,000 5 $ 15,000,000 6 $ 50,000,000 8 $ 50,000,000 6 $ 50,000,000 6 $ 15,000,000 7 $ 50,000,000 9 $ 50,000,000 7 $ 50,000,000 7 $ 15,000,000 8 $ 50,000,000 10 $ 50,000,000 8 $ 50,000,000 8 $ 15,000,000 9 $ 50,000,000 11 $ 50,000,000 9 $ 50,000,000 9 $ 15,000,000 10 $ 50,000,000 12 $ 50,000,000 10 $ 50,000,000 10 $ 15,000,000

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