How Many Possible IRRs Could You Find for the Following

question 2

Multiple Choice

How many possible IRRs could you find for the following set of cash flows? $$\begin{array} { | r | l | l | l | l | l | } \hline \text { Time } & 0 & 1 & 2 & 3 & 4 \\\hline \text { Cash Flow } & - \$ 201,000 & - \$ 37,350 & \$ 460,180 & \$ 217,020 & - \$ 5,000 \\\hline\end{array}$$

• A)1
• B)2
• C)3
• D)4

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Definitions:

Consideration Transferred

The total payment made by an acquirer to obtain control of an acquiree, which can include cash, assets, or other forms of payment.

Fair Value

A measurement of an asset's sale price, assuming a transaction between knowledgeable, willing parties in an arm's length transaction.

Directly Attributable Costs

Costs that can be directly linked to a specific asset, activity, or project, and thereby included in its cost base.