This document describes an investment with 6 cash flows over multiple time periods: -10,000; -6,000; 8,000; 8,000; +2,000; -2,500. It then asks if the investment is simple or nonsimple, and how many rates of return there are.
An investment has the following 6 cash flows, where the first cash f.pdf
1. An investment has the following 6 cash flows, where the first cash flow occurs at time period 0. -
10,000; -6,000; 8,000; 8,000; +2,000; -2,500.
Is this Simple or Nonsimple?_____________________
How many rates of return are there?_____________
Solution
Non simple
Two rates of returns