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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

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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