Question: d) Now, using the following formula, calculate the External Rate of Return (ERR) of the cashflows above, assuming a yield of 10%: . RE (1

d) Now, using the following formula, calculate the External Rate of

d) Now, using the following formula, calculate the External Rate of Return (ERR) of the cashflows above, assuming a yield of 10%: . RE (1 + ERR) {" (1+y) =0 Where Rrepresents the positive values of the cash flow, and C represent the negatives values of the cash flows, and y would be the yield used to discount the cash flows (y is also called the reinvestment rate, and it is sometimes denoted as MARR). Hint: you can use the Goal Seek function in Excel to do this. d) Now, using the following formula, calculate the External Rate of Return (ERR) of the cashflows above, assuming a yield of 10%: . RE (1 + ERR) {" (1+y) =0 Where Rrepresents the positive values of the cash flow, and C represent the negatives values of the cash flows, and y would be the yield used to discount the cash flows (y is also called the reinvestment rate, and it is sometimes denoted as MARR). Hint: you can use the Goal Seek function in Excel to do this

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