a) Determine the number of positive roots to the rate of return relation. b) Calculate the external rate of return, using the return on invested capital approach( ROIC).

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
5th Edition
ISBN:9781305084766
Author:Saeed Moaveni
Publisher:Saeed Moaveni
Chapter20: Engineering Economics
Section: Chapter Questions
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For the NCF shown below, if MARR = 17% and investment rate i-12% per year.
Year
0
NCF
2500
-1000
-2000
-7000 8000
F-F₁(1+k)+NCF,
Where: ki, if F₁0 and k-i" if F₁<0
a) Determine the number of positive roots to the rate of return relation.
b) Calculate the external rate of return, using the return on invested capital approach( ROIC).
Transcribed Image Text:For the NCF shown below, if MARR = 17% and investment rate i-12% per year. Year 0 NCF 2500 -1000 -2000 -7000 8000 F-F₁(1+k)+NCF, Where: ki, if F₁0 and k-i" if F₁<0 a) Determine the number of positive roots to the rate of return relation. b) Calculate the external rate of return, using the return on invested capital approach( ROIC).
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