Given the cash flows in table, determine the ROR.(Please show work in order to b
ID: 1098288 • Letter: G
Question
- Given the cash flows in table, determine the ROR.(Please show work in order to be rated ):
Year 0 1 2 3 4 5 Cash Flow -$10,000 $0 $0 $0 $2,000 $14,000 -
- A.)10.14%
- B.)8.23%
- C.)12.23%
- D.)9.51%
-
Year 0 1 2 3 4 5 Cash Flow -$10,000 $0 $0 $0 $2,000 $14,000 Given the cash flows in table, determine the ROR.(Please show work in order to be rated ):
Year 0 1 2 3 4 5 Cash Flow -$10,000 $0 $0 $0 $2,000 $14,000
A.)10.14% B.)8.23% C.)12.23% D.)9.51%
Year 0 1 2 3 4 5 Cash Flow -$10,000 $0 $0 $0 $2,000 $14,000
Explanation / Answer
let ROR=r
10000 =2000/(1+r)^4 + 14000/(1+r)^5
from calculation we get
r= 0.1014
so ROR = 10.14%
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