(show work)

2 If you deposit $1,000 now and are promised payments of $500 three years from now and $1,500 five years from now, the equation that will yield the correct rate of return is:

A) -1000 = 500(P/F,i,3) + 1500(P/F,i,5)

B) 0 = 1000 + 500(P/F,i,3) + 1500(P/F,i,5)

C) 1000 = -500(P/F,i,3) - 1500(P/F,i,5)

D) 0 = -1000 + 500(P/F,i,3) + 1500(P/F,i,5)

3 For the equation: 5,000 = 1,000(P/F,i,1) - 2,000(P/F,i,2) + 7,000(P/F,i,7) + 7,000(P/F,i,9), the number of possible rate of return values is:

A) 1

B) 2

C) 3

D) 4

4there is more than one sign change in the net cash flow of a rate of return equation, the possible rate of return values will fall in the range of:

A) minus infinity to plus infinity

B) minus 100% to plus infinity

C) minus 100% to plus 100%

D) minus infinity to plus 100%

5 When multiple rate of return values are possible for a rate of return equation, one way to come up with a single value which satisfies the equation is:

A) Solve for the internal rate of return

B) Use the project net investment procedure

C) Eliminate all rate of return values above 100%

D) Eliminate all rate of return values below 0%