A cash flow sequence has a receipt of $8,000 today, followed by a disbursement of $6,000 at the end of this year and again next year, and then a receipt of $3, 828 three years from now. The MARR is 5%. 

(a) What is the precise ERR for this set of cash flows?

(b) What is the approximate ERR for this set of cash flows? 

(c) Would a project with these cash flows be a good investment?

Transcribed Image Text:

8000 3,828 1 2 4 -6,000 -6,000 3. 8000 3,828 1 2 4 -6,000 -6,000 3.