1. The cash flow (in $1000 units) associated with a new method of manufacturing box cutters is shown below for a 2-year period. (a) Use Descartes rule to determine the maximum number of possible rate of return values. (b) Use Norstroms criterion to determine if there is only one positive rate of return

2. Use the MIRR method with a borrowing rate of 8% per year compounded quarterly and a reinvestment rate of 12% per year compounded quarterly to determine an external rate of return for the cash flows given in Problem 1. Express your answer as an effective annual rate (an APY).

\begin{tabular}{ccc} \hline Quarter & Expenses, $1000 & Revenue, $1000 \\ \hline 0 & 20 & 0 \\ 1 & 20 & 5 \\ 2 & 10 & 10 \\ 3 & 10 & 25 \\ 4 & 10 & 26 \\ 5 & 10 & 20 \\ 6 & 15 & 17 \\ 7 & 12 & 15 \\ 8 & 15 & 2 \\ \hline \end{tabular} \begin{tabular}{ccc} \hline Quarter & Expenses, $1000 & Revenue, $1000 \\ \hline 0 & 20 & 0 \\ 1 & 20 & 5 \\ 2 & 10 & 10 \\ 3 & 10 & 25 \\ 4 & 10 & 26 \\ 5 & 10 & 20 \\ 6 & 15 & 17 \\ 7 & 12 & 15 \\ 8 & 15 & 2 \\ \hline \end{tabular}