Determine the eror value for the given cash flow series

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Reference no: EM131919566

Studies indicate that Honda has a WACC of 9% per year. Due to the nature of this contract business, any excess funds generated are expected to earn at a rate of 8% per year. Use the modified ROR method to determine the EROR value for the given cash flow series. (X0=$1,700, X1=$-600, X2=$-6,800, X3=$7,000)

Reference no: EM131919566

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