The following is Macy's cash flows from 2006 to 2010: Year Cash Flow 2006 $1,406,000,000 2007 $ 995,000,000 $ 893,000,000 2009 $-4,775,000,000 (time of the housing crisis and recession) 2010 $329,000,000 Based on the information provided, what is the rate of return for the company during this five-year period? 2008 a. 5% b. 15% O 10%

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Chapter1: Making Economics Decisions
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The following is Macy's cash flows from 2006 to 2010:
Year
Cash Flow
2006
$1,406,000,000
2007
$ 995,000,000
2008
$ 893,000,000
2009
$-4,775,000,000 (time of the housing crisis and recession)
2010
$329,000,000
Based on the information provided, what is the rate of return for the company during this five-year period?
a. 5%
b. 15%
O c. 10%
O d. 25%
Transcribed Image Text:The following is Macy's cash flows from 2006 to 2010: Year Cash Flow 2006 $1,406,000,000 2007 $ 995,000,000 2008 $ 893,000,000 2009 $-4,775,000,000 (time of the housing crisis and recession) 2010 $329,000,000 Based on the information provided, what is the rate of return for the company during this five-year period? a. 5% b. 15% O c. 10% O d. 25%
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