4. 6.47 Hitec Home Services manufactures a ventilation controller designed for monitoring and controlling carbon monoxide in parking garages, boiler rooms, tunnels, etc. The net cash flows associated with one phase of the operation are shown below.

1. How many possible rate of return values are there for this cash flow series?

2. Find all the rate of return values between 0 and 100% using tabulated factors and a spreadsheet.

3. (Added spreadsheet exercise) Resolve to find any i* values between −99% and 0%. Does the result agree with the conclusion of the rule of signs (Descartes’ rule) and cumulative cash flow

(Norstrom’s criterion) tests?

Table Summary: Table divided into 2 columns with the headings marked as: Year and Net Cash Flow in dollars.

Year Net Cash Flow, $

0 −30,000 1 20,000 2 15,000 3 −2,000