Describe the Decision Rule for Nonsimple Investments?

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.6P
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Describe the Decision Rule for Nonsimple Investments?

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In a simple investment, cash flows change sign only one time. For example, negative cash flow in the beginning and thereafter series of positive cash flows during the project. In case, sign changes for more than once then it is a non-simple investment.

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