Question

help.

Answer 1

@retirEEd

Answer 2

@mathmale

Answer 3

I think the answer is E

Answer 4

over 4 years the dollar amount is increasing by 2500

Answer 5

Hello, R_S,
I believe you need to look at the entire series of cash flows, Year 0 through Year 5, to calculate the internal rate of return. The -15000 represents an initial investment or purchase (such as the purchase of a machine), and the remaining five lines of the table represent cash coming back in. The goal here is to convert that to a single rate of return that covers the entire period in question.

I may remember and understand what this means, but have long forgotten the formula or formulas that should be applied to calculate the ROR.

Might want to do an Internet search for "Rate of Return on Cash Flow" or something like that:

https://www.google.com/search?sourceid=chrome-psyapi2&ion=1&espv=2&es_th=1&ie=UTF-8&q=rate%20of%20return%20for%20cash%20flow&oq=rate%20of%20return%20for%20cash%20flow&aqs=chrome..69i57j0l5.4944j0j7

Answer 6

I don't believe that the linearity of the increasing cash flow function is significant when it comes to calculating the ROR.

Answer 7

hold on for a sec let me try something