The annual revenues (in $1000 units) associated with several large apartment complexes are $0, $350, $290, $460, $150, and $320 for years 0, 1, 2, 3, 4, and 5, respectively. Determine (1) whether each cash flow series is conventional or nonconventional, (2) the maximum number of real-number roots, and (3) if there is one, positive real-number i* value. The cash flows for years 0, 1, 2, 3, 4, and 5, respectively, are: (a) $−1500, $−90, $−40, $−85, $−60, and $−90 (b) $−1500, $−450, $−300, $−400, $−125, and $−400 (c) $1500, $−450, $−300, $−500, $−200, $−400 (d) $−1500, $−450, $−300, $−400, $−125, and $−310
The annual revenues (in $1000 units) associated with several large apartment complexes are $0, $350, $290, $460, $150, and $320 for years 0, 1, 2, 3, 4, and 5, respectively. Determine (1) whether each cash flow series is conventional or nonconventional, (2) the maximum number of real-number roots, and (3) if there is one, positive real-number i* value. The cash flows for years 0, 1, 2, 3, 4, and 5, respectively, are: (a) $−1500, $−90, $−40, $−85, $−60, and $−90 (b) $−1500, $−450, $−300, $−400, $−125, and $−400 (c) $1500, $−450, $−300, $−500, $−200, $−400 (d) $−1500, $−450, $−300, $−400, $−125, and $−310
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
The annual revenues (in $1000 units) associated
with several large apartment complexes are $0,
$350, $290, $460, $150, and $320 for years 0, 1, 2,
3, 4, and 5, respectively. Determine (1) whether
each cash flow series is conventional or nonconventional,
(2) the maximum number of real-number
roots, and (3) if there is one, positive real-number
i* value. The cash flows for years 0, 1, 2, 3, 4, and
5, respectively, are:
(a) $−1500, $−90, $−40, $−85, $−60, and
$−90
(b) $−1500, $−450, $−300, $−400, $−125, and
$−400
(c) $1500, $−450, $−300, $−500, $−200,
$−400
(d) $−1500, $−450, $−300, $−400, $−125, and
$−310
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