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A project with an initial cost of $30,000 promises to return $5,000; $10,000; $11,000; $13,000; and $17,000 in years 1 through 5 respectively, and
A project with an initial cost of $30,000 promises to return $5,000; $10,000; $11,000; $13,000; and $17,000 in years 1 through 5 respectively, and nothing after that. a. Draw the cash flow diagram. b. What is the ROR for this project? (Estimate the ROR as a % with 1 decimal place: e.g., 42.7%). Use the interpolation method with 2 iterations minimum. Show your work.
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Foundations Of Finance
Authors: Arthur J. Keown, John H. Martin, J. William Petty
9th Edition
978-0134083285, 134083288, 978-0134084015
