How Many Possible IRRs Could You Find for the Following

question 97

Multiple Choice

How many possible IRRs could you find for the following set of cash flows?
$$\begin{array} { l c c c c c c } \text { Time } & 0 & 1 & 2 & 3 & 4 \\\text { Cash Flow } & - \$ 10,000 & \$ 5,350 & \$ 4,180 & \$ 1,520 & \$ 2,000\end{array}$$

• A) 1
• B) 2
• C) 3
• D) Unable to determine unless we have the cost of capital.

---

Definitions:

Ego-Ideal

Part of the psychoanalytic theory, representing an individual's personal standard of what is morally and ethically right or wrong.

Personality

The amalgamation of qualities that shapes a person's distinctive individuality.

Rationalization

A defense mechanism where controversial behaviors or feelings are justified and explained in a seemingly rational or logical way to avoid the true explanation.

Defense Mechanism

Psychological strategies unconsciously used by individuals to protect themselves from anxiety and confrontations with unpleasant aspects of reality.