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Consider the following cash flow of an initial $500,000 investment (at Year 0). The MARR for this project is 14%. N Cash Flow 0 (Initial
Consider the following cash flow of an initial $500,000 investment (at Year 0). The MARR for this project is 14%.
| N | Cash Flow |
| 0 (Initial Investment) | -$500,000 |
| 1 | $400,000 |
| 2 | 0 |
| 3 | 0 |
| 4 | $2,000,000 |
| 5 | -$1,500,000 |
- What is the undiscounted rate of return for the entire investment? A. 80%.
- 140%.
- -75%
- 300%.
- None of the above.
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