Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 17QTD
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Question
Explain Decision Rule for Nonsimple Investments?
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Introduction
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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