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I would like help with the question. Please, use Descartes's rule for Net Cash flow and Norstrom's for Cumulative CF. Please, show all your steps.

I would like help with the question. Please, use Descartes's rule for Net Cash flow and Norstrom's for Cumulative CF. Please, show all your steps. Thank you so much.

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Determine the maximum number of i* values for the cash flow shown below Year Expense Income Net cash flow Cumulative CF 0 1 2 3 -12,000 -5,000 -6,000 -7,000 -8,000 -9,000 + 3,000 +9,000 +15,000 +16,000 +8,000 -12,000 -2,000 +3,000 +8,000 +8,000 -1,000 -12,000 -14,000 -11,000 -3,000 +5,000 +4,000 4 5 Solution: The sign on the net cash flow changes The cumulative cash flow begins twice, indicating two possible i* values negatively with one sign change Therefore, there is only one i* value ( i* = 8.7%) Determine the maximum number of i* values for the cash flow shown below Year Expense Income Net cash flow Cumulative CF 0 1 2 3 -12,000 -5,000 -6,000 -7,000 -8,000 -9,000 + 3,000 +9,000 +15,000 +16,000 +8,000 -12,000 -2,000 +3,000 +8,000 +8,000 -1,000 -12,000 -14,000 -11,000 -3,000 +5,000 +4,000 4 5 Solution: The sign on the net cash flow changes The cumulative cash flow begins twice, indicating two possible i* values negatively with one sign change Therefore, there is only one i* value ( i* = 8.7%)

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