Determine the Rate of Return of the Following Cash Flow

Determine the rate of return of the following cash flow using the ERR method and the reinvestment rate of 4% per year. $$\begin{array} { | l | l | l | l | l | l | } \hline\text { Year } & \text { Expense, } \$ & \text { Revenue, } \$ & \text { Year } & \text { Expense, } \$ & \text { Revenue, } \$ \\\hline 0 & 140,000 &- & 6 & 32,000 & 82,000 \\\hline 1 & 32,000 & 47,000 & 7 & 32,000 & 89,000 \\\hline 2 & 32,000 & 54,000 & 8 & 32,000 & 96,000 \\\hline 3 & 32,000 & 61,000 & 9 & 32,000 & 103,000 \\\hline 4 & 32,000 & 68,000 & 10 & 32,000 & 110,000 \\\hline 5 & 32,000 & 75,000 & 11 & 32,000 & 117,000 \\\hline\end{array}$$