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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.
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%)Step by Step Solution
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