Question: For the cash flows shown below: (a) Determine how many roots of ROR do exist? (6) Compute the internal rate of return, ROR. Prove that

 For the cash flows shown below: (a) Determine how many roots

For the cash flows shown below: (a) Determine how many roots of ROR do exist? (6) Compute the internal rate of return, ROR. Prove that the ROR computed in (b) is correct. Year Cash Flow 0 -$4,000 1,000 1 2 -500 3 1,000 2,000 4 5 2,000 6 1,000

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