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,C₁= +500,C₂= -300,C₃= +1,000,C₄= +200.

• A) 1
• B) 2
• C) 3
• D)4

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Definitions:

Algorithm

A methodical process or set of instructions designed to resolve an issue.

Fixation

Using a prior strategy and failing to look at a problem from a fresh new perspective.

Inductive Reasoning

Inductive reasoning is a method of reasoning in which specific observations or cases are used to form a general conclusion or theory.

Deductive Reasoning

An intellectual method where a deduction is made from the agreement of several assumptions, which are usually believed to be accurate.