How Many Possible IRRs Could You Find for the Following

question 1

Multiple Choice

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

• A) 1
• B) 2
• C) 3
• D) 4

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Definitions:

Certificated Options

Options to buy or sell assets, especially securities, which are recognized and documented by a certificate.

Transferable

The characteristic of an asset or a legal right that allows it to be legally transferred or assigned from one party to another.

Warrants

Legal documents issued by a court or government authority that give law enforcement the power to perform certain actions, such as arrests or searches; also refers to financial instruments granting the right to purchase stock at a specified price.

De Facto Corporation

A business entity that operates like a corporation without formal incorporation status, but is treated as a corporation by law under certain conditions.