Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 58

Harley worked for many years to save enough money to start his own residential landscape design business. The cash flows shown are those he recorded for the first 6 years as his own boss. Find the external rate of return using the modified rate of return approach, an investment rate of 15% per year, and a borrowing rate of 8%. (After using the procedure, use the MIRR function to confirm your answer.)