For the cash flows shown, determine: (a) the number of possible i* values (b) the i* value displayed by the IRR function (c) the external rate of return using the MIRR method if i;= 18% per year and ib = 10% per year. Year Revenue, $ 0 1 2 3 4 0 25,000 19,000 4,000 28,000 Cost, $ -6,000 -30,000 -7,000 -6,000 -12,000 The number of i* values according to the rule of signs test is (Click to select) According to the cumulative cash flow sign test, /value is (Click to select) The IRR function displays value as %. The external rate of return according to the MIRR method is %.

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 3SEQ: The expected period of time that will elapse between the date of a capital investment and...
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For the cash flows shown, determine:
(a) the number of possible /* values
(b) the value displayed by the IRR function
(c) the external rate of return using the MIRR method if i;= 18% per year and ib = 10% per year.
Year
Revenue, $
0
1
2
3
4
о
25,000
19,000
4,000
28,000
Cost, $
-6,000
-30,000
-7,000
-6,000
-12,000
The number of i* values according to the rule of signs test is (Click to select) ✓
According to the cumulative cash flow sign test, /* value is (Click to select)
The IRR function displays i* value as
%.
The external rate of return according to the MIRR method is
%.
Transcribed Image Text:For the cash flows shown, determine: (a) the number of possible /* values (b) the value displayed by the IRR function (c) the external rate of return using the MIRR method if i;= 18% per year and ib = 10% per year. Year Revenue, $ 0 1 2 3 4 о 25,000 19,000 4,000 28,000 Cost, $ -6,000 -30,000 -7,000 -6,000 -12,000 The number of i* values according to the rule of signs test is (Click to select) ✓ According to the cumulative cash flow sign test, /* value is (Click to select) The IRR function displays i* value as %. The external rate of return according to the MIRR method is %.
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