Determine interest rate used in computing project balance

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Reference no: EM131002984

Consider the project balances in Table P5.19 fro a typical investment project with a service life of four years.

Table P5.19

n An Project Balance

0 -10000 -10000

1 - -9000

2 - -7000

3 +1840 -6000

4 - 800

a) Determine the interest rate used in computing the project balance

b) Reconstruct the original cash flows of the project.

c) would the project be acceptable at i = 15%

Reference no: EM131002984

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