Question
A cash flow sequence has a receipt of $8,000 today, followed by a disbursement of $6,000 at the end of this year and again next
A cash flow sequence has a receipt of $8,000 today, followed by a disbursement of $6,000 at the end of this year and again next year, and then a receipt of $3, 828 three years from now. The MARR is 5%.
(a) What is the precise ERR for this set of cash flows?
(b) What is the approximate ERR for this set of cash flows?
(c) Would a project with these cash flows be a good investment?
8000 3,828 1 2 4 -6,000 -6,000 3.
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Project Management A Managerial Approach
Authors: Jack R. Meredith, Samuel J. Mantel,
7th Edition
470226218, 978-0470226216
