| Learning Objectives (See related pages)
Definition of ROR State the meaning of rate of return. |
| | | ROR using PW and AW Calculate the rate of return using a present worth or annual
worth equation. |
| | | Cautions about ROR Understand the difficulties of using the ROR method,
relative to PW and AW methods. |
| | | Multiple RORs Determine the maximum number of possible ROR values
and their values for a specific cash flow series. |
| | | Composite ROR Calculate the composite rate of return using a stated
reinvestment rate. |
| | | ROR of bonds Calculate the nominal and effective interest rate for a bond
investment. |
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