For the cash flow series below, calculate the external rate of return, using the return on invested capital approach with an investment rate of 14% per year. Year Cash Flow, $
0 3000
1 –2000
2 1000
3 –6000
4 3800

15.04%

Explanation:

When calculating the external rate of return, any excess cash flows are supposed to earn the MARR. It is used when there are multiple IRRs.

Year      Cash Flow

0             $3,000      

1             -$2,000       discounted at Year 0 = -$2,000/1.14 = -$1,754.39

2            $1,000        

3           -$6,000        discounted at Year 0 = -$6,000/1.14³ = -$4,049.83

4            $3,800      

total                         discounted at Year 0 = -$5,804.22

now we calculate the future value of our cash inflows:

Year      Cash Flow

0             $3,000      FV at end of Year 4 = $3,000 x 1.14⁴ = $5,066.88

2            $1,000          FV at end of Year 4 = $1,000 x 1.14² = $1,299.60

4            $3,800       FV at end of Year 4 = $3,800

total                         future value at end of Year 4 = $10,166.48

now we have the following equation:

-$5,804.22 x (1 + i)⁴ = $10,166.48

(1 + i)⁴ = $10,166.48 / -$5,804.22 = -1.751567

⁴√(1 + i) = ⁴√-1.751567

1 + i = 1.1504

i = 0.1504 = 15.04%

according to the song of roland, the characteristics of an ideal knight are: loyalty to the king, skilled warriors and horseman, valiant, bold, courageous, strong and proud in battle. they should be determined to fulfil their duties and willing to die to make their people safe.

answer; be sure that the information on file is correct;