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Learning Objectives
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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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