According to Norstroms criterion, there is only one positive rate of return value in a cash flow
Question:
According to Norstrom’s criterion, there is only one positive rate of return value in a cash flow series when:
(a) The cumulative cash flow starts out positive and changes sign only once
(b) The cumulative cash flow starts out negative and changes sign only once
(c) The cumulative cash flow total is greater than zero
(d) The cumulative cash flow total is less than zero
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 62% (8 reviews)
b The cumulati...View the full answer
Answered By
Munir Ahmed Jakhro
I am professional Tutor of of Business Courses, I did my four years Bachelor Degree from one of the Top Business schools of World "Institute of Business Administration" in year 2013. Since then I have been working as Tutor of Accounting, Finance tutor on different online platforms like this website. I am have experience of 6 years teaching business courses to students online and offline my professional job at national savings also helped me in accounting understanding .
4.90+
8+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
According to Norstrom's criterion, there are two requirements regarding the cumulative cash flows that must be satisfied to ensure that there is only one positive root in a rate of return equation....
-
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...
-
When would the direct method and the step-down method of service department cost allocation result in identical allocations being made to the operating departments? 1. That can happen only if there's...
-
Some food retailers propose subjecting food to a low level of radiation in order to improve safety, but sale of such "irradiated" food is opposed by many people. Suppose a grocer wants to find out...
-
1. What do you think of Richard's idea of borrowing to place money in the stock market? 2. Do you think the couple should refinance their mortgage? 3. Should they use the adjustable-rate mortgage...
-
The following graph shows the cost curves for a perfectly competitive firm. Identify the shutdown point, the breakeven point, and the firm's short-run supply curve. MC ATC AVC
-
Find the free-vibration response of a rectangular membrane of sides \(a\) and \(b\) subjected to the following initial conditions: \[\left.\begin{array}{c}w(x, y, 0)=0 \\\frac{\partial w}{\partial...
-
On July 1, 2010, Rossillon Company issued $4,000,000 face value, 8%, 10-year bonds at $3,501,514.This price resulted in an effective-interest rate of 10% on the bonds Rossill on uses the...
-
Guitars by Dave crafts an acoustic guitar that sells for $2,500. The variable costs per guitar are $1,750 and the total fixed costs are $180,000. What is the total dollar sales required to earn a...
-
Gold has a density of 19.3 g/mL. Suppose you have 100.0 glonkins of gold. What volume in liters will the gold occupy? Here are some conversion factors to help you: 0.911 ounce per glonkin and 28.35 g...
-
Solve by the classical RK. The system in Prob. 2 Data from Prob. 2 y' 1 = -y 1 + y 2 , y' 2 = -y 1 - y 2 , y 1 (0) = 0, y 2 (0) = 4, h = 0.2, 5 steps
-
When positive net cash flows are generated before the end of a project, and when these cash flows are reinvested at an interest rate that is greater than the internal rate of return, (a) The...
-
At a point in the plane, two electric charges create an electric field (a vector quantity) of 25.9 kN/C at 10.8 above the horizontal to the right and 12.6 kN/C at 83.4 below the horizontal to the...
-
There appears to be widespread agreement that in regions where the distribution of land ownership is highly unequal (mainly Latin America but also parts of Asia), land reform is a necessary but not...
-
What steps might governments in less developed countries take to reduce overexploitation of natural resources? What impact do pricing policies have?
-
Compare and contrast the classical labor cost theory of comparative advantage with the neoclassical factor endowment theory of international trade. Be sure to include an analysis of both assumptions...
-
What types of environmental problems do the rural and urban poor share? What are some differences in the conditions they face?
-
List and briefly describe the principal causes of high population growth in developing countries and the major consequences.
-
Voyage Enterprises is a fictional manufacturer of handcrafted leather suitcases and travel bags. Assembly of suitcases is a laborintensive process and requires completion of seven task elements shown...
-
A police officer pulls you over and asks to search your vehicle because he suspects you have illegal drugs inside your car. Since he doesn't have reasonable suspicion to search your car, legally he...
-
Extended Learning Exercise The additional investment in a new computer system is a certain $300,000. It is likely to save an average of $100,000 per year compared to the old, outdated system. Because...
-
A firm must decide between constructing a new facility or renting a comparable office space. There are two random outcomes for acquiring space, as shown in Figure PI 2-25. Each would accommodate the...
-
Refer to Example 12-4. After additional research, the range of probable useful lives has been narrowed down to the following three possibilities: Useful Life, Years (W) p(N) 14...
-
ASSESSMENT 1 BRIEF Objective of the task The purpose of this task is to demonstrate your knowledge of how to use commercial kitchen equipment to prepare a range of different food types with very...
-
A man drops a rock into a well. (a) The man hears the sound of the splash 2.23 s after he releases the rock from rest. The speed of sound in air (at the ambient temperature) is 336 m/s. How far below...
-
(a) An image with 8 gray levels is shown in the following figure. Hand calculates histogram equalization to the image. Show how you compute the mappings and the histogram equalized image. 2 1 0 1 1...
Study smarter with the SolutionInn App