Consider the following cash flows over a 5-year period: -$100,000 @ t = 0; $35,000 @ t = 1; $45,000 @ t = 2; -$40,000 @ t = 3; $50,000 @t = 4; and $60,000 @t=5. Using Descartes' rule of signs, how many positive rates of return are there? ○ Exactly one. ○ Exactly two. ○ Exactly three. ○ At most two. ○ At most three.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter16: The Markets For Labor, Capital, And Land
Section: Chapter Questions
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Consider the following cash flows over a 5-year period: -$100,000 @ t = 0; $35,000 @ t = 1; $45,000 @ t = 2; -$40,000 @ t = 3; $50,000
@t = 4; and $60,000 @t=5. Using Descartes' rule of signs, how many positive rates of return are there?
○ Exactly one.
○ Exactly two.
○ Exactly three.
○ At most two.
○ At most three.
Transcribed Image Text:Consider the following cash flows over a 5-year period: -$100,000 @ t = 0; $35,000 @ t = 1; $45,000 @ t = 2; -$40,000 @ t = 3; $50,000 @t = 4; and $60,000 @t=5. Using Descartes' rule of signs, how many positive rates of return are there? ○ Exactly one. ○ Exactly two. ○ Exactly three. ○ At most two. ○ At most three.
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