How many possible IRRs could you find for the following set of cash flows?

A)1
B)2
C)3

Name: How many possible IRRs could you find for the following set of cash flows? A)1 B)2 C)3
Brand: Quizplus
Rating: 4.8 (32 reviews)

Question

How many possible IRRs could you find for the following set of cash flows?

A)1 
B)2 
C)3

Quizplus · Accepted Answer

Generally, there can be multiple possible IRRs for a set of cash flows with multiple sign changes. In this case, there are two sign changes (from negative to positive and then from positive to negative), which suggests that there could be multiple IRRs. Therefore, choice B (2) is the best answer.

How Many Possible IRRs Could You Find for the Following