Question
The following are the net cash flows for a project under consideration: F 0 = -600 F 1 = 3200 F 2 = -2000 F
The following are the net cash flows for a project under consideration:
F0 = -600
F1 = 3200
F2 = -2000
F3 = -6400
F4 = 6400
a) Plot PW(i) starting at an interest rate of 0% and ending at 350%.
b) Find all non-negative rates of return for this project
c) Compute the modified rate of return (the solution to FW(i;k) = 0) for external rates k = 10% and 50%.
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Expert Systems In Auditing
Authors: J C Van Dijk, Paul Williams, Michael P. Cangemi
1st Edition
1349124761, 978-1349124763
