Rate of return calculation


Question: Should this project be accepted based on its rate of return if the company requires a 14 percent return?

Year 0 1 2 3 4

CF -215900 91500 95700 -11200 118400

1. yes; the project's rate of return is 14.12 percent

2. yes; the project's rate of return is 17.57 percent

3. no; the project's rate of return is 9.49 percent

4. no; the project's rate of return is 11.78 percent

5. The project's rate of return cannot be computed because the cash flows are

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Project Management: Rate of return calculation
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