Determine the Rate of Return of the Following Cash Flow

Short Answer

Determine the rate of return of the following cash flow using the ERR method and the reinvestment rate of 4% per year. $$\begin{array} { | l | l | l | l | l | l | } \hline\text { Year } & \text { Expense, } \$ & \text { Revenue, } \$ & \text { Year } & \text { Expense, } \$ & \text { Revenue, } \$ \\\hline 0 & 140,000 &- & 6 & 32,000 & 82,000 \\\hline 1 & 32,000 & 47,000 & 7 & 32,000 & 89,000 \\\hline 2 & 32,000 & 54,000 & 8 & 32,000 & 96,000 \\\hline 3 & 32,000 & 61,000 & 9 & 32,000 & 103,000 \\\hline 4 & 32,000 & 68,000 & 10 & 32,000 & 110,000 \\\hline 5 & 32,000 & 75,000 & 11 & 32,000 & 117,000 \\\hline\end{array}$$