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4. For the following incremental cash flow series, what is the maximum number of values according to the cash flow rule of signs? Year
4. For the following incremental cash flow series, what is the maximum number of values according to the cash flow rule of signs? Year 0 1 Cash Flow, S 40 -100 4 -11 3 2 -15 35 5 60 6 42 7 12 8 -10
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The cash flow rule of signs states that for a series of cash flows the maximum number of sign changes indicates the maximum number of unique positive or negative cash flows Lets analyze the given incremental cash flow series Year 01 8 Year 02 7 Year 03 5 Year 04 4 Year 05 3 Year 06 100 Year 07 40 Year 08 15 Year 09 11 Year 10 60 Year 11 6 Year 12 42 Year 13 12 Year 14 10 Now lets determine the sign changes in the cash flow series From Year 01 to Year 02 Positive to Positive No sign change ...
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Introduction To Materials Management
Authors: Arnold J. R. Tony, Gatewood Ann K., M. Clive Lloyd N. Chapman Stephen
8th edition
9386873249, 134156323, 978-9386873248
