Use formulas (f/a,I,n) or whichever. 7-13 Compute the rate of return for the following cash flow...

Question

Question

Use formulas (f/a,I,n) or whichever.
7-13 Compute the rate of return for the following cash flow Year Cash Flow 1-5 -$6,209 6-10 10,000

business economics

Answer 1

Answer #1

The rate of return is close to 10%

Explanation:

Rate of return is rate at which the net present value is equal to 0. The same is computed as under:

Answer 2

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