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If you are in the trial and error stage of a ROR analysis and got the following answer: Let Ai*= 12% -18,000+5,500 (P/A, 12
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The correct answer is option b that is 5% as all the other options 13% , 14% and 15% are more then 12% which means the npv will be negative and so the right choice would be to go towards a lower interest rate then 12% and which in this case is 5%.

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