One of your employees presented you the cash flow estimates (in $1000 units) for a new method of manufacturing box cutters for a 2-year period.

(a) Apply the rule of signs to determine the maximum number of possible i* values at aMARR of 5% per quarter.

(b) Apply Norstrom’s criterion to determine if there is only one positive rate of return value.

(c) Is it possible to determine a positive i* for this net cash flow series that meets the MARR? Why or why not?


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