How Many IRRs Are Possible for the Following Set of Cash

question 31

Multiple Choice

How many IRRs are possible for the following set of cash flows? CF0 = -1,000, CF1 = + 500, CF2 = -300, CF3 = + 1,000, CF4 = + 200.

• A)1
• B)2
• C)3
• D)4

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Definitions:

Fiduciary Responsibility

The obligation to act in the best interest of another party, such as a trustee acting for the benefit of the trust's beneficiaries.

Prudently

Acting with or showing care and thought for the future, often within the context of managing finances or making financial decisions.

Ex-Dividend Date

The cutoff date established by a company by which investors must be on the company's books to receive the next dividend payment.