RKI Instruments manufactures a ventilation controller designed for monitoring and controlling carbon monoxide in parking garages, boiler rooms, tunnels, etc. The net cash flow associated with one plant for the first 3 years of operation is shown. (a) What do the two rules about sign changes indicate concerning i* values? (b) Find all rate of return values between 0 and 100%. Year Net Cash Flow, $ 0 −30,000 1 20,000 2 15,000 3 −2000

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Chapter1: Making Economics Decisions
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RKI Instruments manufactures a ventilation controller
designed for monitoring and controlling carbon
monoxide in parking garages, boiler rooms, tunnels,
etc. The net cash flow associated with one plant for
the first 3 years of operation is shown. (a) What do
the two rules about sign changes indicate concerning
i* values? (b) Find all rate of return values between
0 and 100%.
Year Net Cash Flow, $
0 −30,000
1 20,000
2 15,000
3 −2000

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