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7A. Difficulties in Solving for an Interest Rate

There are situations where there may be more than one possible Rate of Return or Interest Rate for a series of cash flows. This issue is addressed in Chap. 7A and here you will see how to use a spreadsheet to aid in evaluating such situations. In addition, you will use separate borrowing and investing interest rates to evaluate a complex opportunity by finding the Modified Internal Rate of Return.

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Evaluating How Many Roots There Are and Estimating Them

Modified Internal Rate of Return

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