How Many IRRs Are Possible for the Following Set of Cash

question 28

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:

Conglomerate Company

A large corporation comprised of diverse subsidiaries or businesses across various industries, often with different operational focus.

Vertical Merger

A merger between two or more companies that operate at different stages within the production process of the same industry.

Vertical Merger

A merger between two companies operating at different levels within an industry's supply chain.

Subsidiary Corporation

A company that is completely or partly owned and partly or entirely controlled by another company, which is referred to as the parent company.