Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 73

A company that makes clutch disks for race cars has the cash flows shown for one department. (a) Determine the number of positive roots to the rate of return relation.
(b) Calculate the internal rate of return.
c) Calculate the external rate of return using the return on invested capital (ROIC) approach with an investment rate of 15% per year. (As assigned by your instructor, solve by hand and/or spreadsheet.)