(you must show full calculations for each question to get credit) You have the following cash flows:

Year 0 1 2 3 4 Net Cash Flow, $ -6,000 -5,000 +12,000 -2,000 +6,000

1. 1) There are possible multiple rates of return for these cash flows. How many possible real- number roots could there be and demonstrate your decision using Decartes Rules of Signs.

2. 2) Show the application of Norstroms Criterion to prove if there is only one real root.

3. 3) Calculate the EROR with ii=16% and ib=8%