A new advertising campaign by a company that manufactures products that apply biometric, surveillance, and satellite technologies

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A new advertising campaign by a company that manufactures products that apply biometric, surveillance, and satellite technologies resulted in the cash flows shown. Calculate unique external rate of return values using

(a) The ROIC method with an investment rate of 30% per year, and

(b) The MIRR approach with an investment rate of 30% and a borrowing rate of 10% per year.

Year ................................................. Cash Flow, $1000
0 ................................................................ 2000
1 ................................................................ 1200
2 .............................................................. −4000
3 .............................................................. −3000
4 ................................................................ 2000

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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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