7) An investment has a net cash flow (ao, a1, a2, a3, and a4) with ao, a, aznegative, a, > 0, and the total flow is positive. Then which is true about theequation Pw(i) = 0a) Has one positive rootb) Has two positive rootsc) Has no positive rootsd) Can't Tell8) A cash flow consists of 13 periods. A uniform flow of $ 500 starts at period5 and ends at period 10 (inclusive). At 10% interest rate/ period. What is itsFuture worth?a) 5133 $b) 5207 Sc) 6211 $d) 6529 $

(7). The given investment is a case of unconventional cash flows wherein there are more than one…

7) An investment has a net cash flow (ao, a1, az, as, and a.) with ao, a,, az negative, a, > 0, and the total flow is positive. Then which is true about the equation Pw(i) = 0 a) Has one positive root b) Has two positive roots c) Has no positive roots d) Can't Tell

7) An investment has a net cash flow (ao, a1, az, as, and a.) with ao, a,, az negative, a, > 0, and the total flow is positive. Then which is true about the equation Pw(i) = 0 a) Has one positive root b) Has two positive roots c) Has no positive roots d) Can't Tell

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 14MC: This calculation determines profitability or growth potential of an investment, expressed as a...

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Question

7) An investment has a net cash flow (ao, a1, a2, a3, and a4) with ao, a, az
negative, a, > 0, and the total flow is positive. Then which is true about the
equation Pw(i) = 0
a) Has one positive root
b) Has two positive roots
c) Has no positive roots
d) Can't Tell
8) A cash flow consists of 13 periods. A uniform flow of $ 500 starts at period
5 and ends at period 10 (inclusive). At 10% interest rate/ period. What is its
Future worth?
a) 5133 $
b) 5207 S
c) 6211 $
d) 6529 $

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