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Consider the following cash flow profile End of Year Cash flow 0 $6,000 1 -$2,000 2 $1,000 3 -$8,800 4 $2,600 1. Calculate cumulative cash
Consider the following cash flow profile End of Year Cash flow 0 $6,000 1 -$2,000 2 $1,000 3 -$8,800 4 $2,600 1. Calculate cumulative cash flows for periods 0 through 5 (report them in your answer), then apply the Norstrom's Rule. What is your conclusion on the number of IRR (i*) values? 2. It is known that i* is in the range [8%, 9%]. Use linear interpolation to approximate i*. Consider the following cash flow profile End of Year Cash flow 0 $6,000 1 -$2,000 2 $1,000 3 -$8,800 4 $2,600 1. Calculate cumulative cash flows for periods 0 through 5 (report them in your answer), then apply the Norstrom's Rule. What is your conclusion on the number of IRR (i*) values? 2. It is known that i* is in the range [8%, 9%]. Use linear interpolation to approximate i*
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