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Consider the following cash flow and compute the equivalent annual worth at i = 11.4%.
The cash flow for years 0 through 6 in dollars is:
19,000
-3,900
-7,300
-9,000
-14,700
-18,400
The answer could be negative
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Discuss capital rationing and soft rationing and what are some of the important points to remember while estimating the cash flows of a project?
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