Determine the number of possible ror values and why

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Reference no: EM131984012

A semi-conductor company in California will significantly expand her chemical vapor deposition units in their various production sites in south-west of the United States. The cash flow for one phase of the project is shown below.

Given reinvestment rate of 15% per year for excess funds and 11 % per year for borrowing rate for extra funds, with 13 % MARR. determine:

Year	Net cash flow
0	+48000
1	+20000
2	-90000
3	+64000
4	-10000
5	-33000

a) Determine the number of possible ROR values and why?

b) Calculate the external rate of return (MIRR).

c) Is the project economically viable?

Reference no: EM131984012

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