Question

21 + - +, the According to Descartes rule of signs, for a net cash flow sequence of + - + number of possible i values is: (2
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Descartes rule states that the total number of real number roots (i.e. i* values) is always less than or equal to the number of sign changes in the net cash flow sequence.

The answer is first option 6.

Signs + + - + - + WW Changes 1st 2nd 3rd 4th 5th 6th

Add a comment
Know the answer?
Add Answer to:
21 + - +, the According to Descarte's rule of signs, for a net cash flow...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • For the following incremental cash flow series, what is the maxi the cash flow rule of...

    For the following incremental cash flow series, what is the maxi the cash flow rule of signs? 4. number of it values according to 4 Year 10 Cash Flow, $ 100 40 35 15 -11 60 4

  • 10.3 Descartes' Rule of Signs (a) If c. C2, ..., Cm are any m nonzero real...

    10.3 Descartes' Rule of Signs (a) If c. C2, ..., Cm are any m nonzero real numbers, and if 2 consecutive terms of this sequence have opposite signs, we say that these 2 terms present a variation of sign. With this concept, we may state Descartes' rule of signs, a proof of which may be found in any textbook on the theory of equations, as follows: Let f(x) = 0 be a polynomial equation with real coefficients and arranged in...

  • D Question 11 3 pts For the net cash flows shown in the table below, the...

    D Question 11 3 pts For the net cash flows shown in the table below, the number of possible rate of return solutions according to the Descarte's rule is: Year Net Cash flow, $ -$50,000 $20,000 $40,000 3 -$5,000 $30,000 $40,000 $2,000 1 .0 3 2.

  • Given the following cash flow, what does Descartes’ Rule tell us about the IRRs of this...

    Given the following cash flow, what does Descartes’ Rule tell us about the IRRs of this project? EOY Net CF There are 3 possible IRRs 0 -10,000 There are 2 possible IRRs 1 2,000 There is 1 possible IRR 2 4,000 There are 0 IRRs 3 -5500 A and B 4 6000 A and C 5 4000 None of the above – you must solve for the IRR

  • DO 5.75 PLEASE 5.71 Consider the following cash flow of a certain project: Net Cash Flow...

    DO 5.75 PLEASE 5.71 Consider the following cash flow of a certain project: Net Cash Flow n 0 -$2000 1 800 2 900 3 If the project's IRR is 10%, (a) Find the value of X. (b) Is this project acceptable at MARR = 8%? 5.75 Recent technology has made possible a computerized vending machine that . grind coffee beans and brew fresh coffee on demand. The computer also makes can possible such complicated functions as changing $5 and $10...

  • Net cash flow and timeline depiction For each of the following projects, determine the net cash...

    Net cash flow and timeline depiction For each of the following projects, determine the net cash flows, and depict the cash flows on a time line. a. A project that requires an initial investment of $120,000 and will generate annual operating cash inflows of $25,000 for the next 18 years. In each of the 18 years, maintenance of the project will require a $5,000 cash outflow. b. A new machine with an installed cost of $85,000. Sale of the old...

  • A (yearly) cash flow stream is X = (-65, 21, 21, 21, 21, 21, 21). The...

    A (yearly) cash flow stream is X = (-65, 21, 21, 21, 21, 21, 21). The spot rates (yearly in percentage) are s = (5.0, 5.3, 5.6, 5.8, 6.0, 6.1). (a) Find the current discount factors dk. (b) Use the discount factors to determine the (net) present value of the cash flow stream. (Keep your answer to 2 decimal places, e.g. xxx.12)

  • There are two additional parts to a and b Question 8 Consider the following cash flow...

    There are two additional parts to a and b Question 8 Consider the following cash flow profile and assume MARR is 15%/yr. EOY NCF 0$75 $21 $21 $21 $21 5 $21 6 $21 Click here to access the TVM Factor Table Calculator. Part a What does Descartes' rule of signs tell us about the IRR(s) of this project? Click if you would like to Show Work for this question: Show LINK TO TEXT LINK TO TEXT LINK TO VIDEO Attempts:...

  • If the net cash flows for a project change signs more than once a. The project...

    If the net cash flows for a project change signs more than once a. The project should never be accepted b. The project may have more than one IRR; the highest IRR should be used to determine whether to accept the project c. The project may have more than one IRR; the NPV method should be used to determine whether to accept the project d. All projects should be ranked according to their payback period to determine which project should...

  • The blank has the options (net income or net cash flow) 3. Net cash flow You...

    The blank has the options (net income or net cash flow) 3. Net cash flow You are Olivia, a financial analyst who works for an investment bank in downtown Denver, Colorado You are analyzing the current cash condition of CansAndString Telecomm. You've collected the following information from the company's financial reports: • The company just reported net sales of $5,000,000. Assume that there are no noncash sales. • The operating costs (excluding depreciation and amortization) are 65% of the company's...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT