How Many Possible IRRs Could You Find for the Following

question 74

Multiple Choice

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

• A) 1
• B) 2
• C) 3
• D) Unable to determine unless we have the cost of capital.

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Definitions:

Guaranteed Income

A system of social welfare provision that guarantees that all citizens or families have an income sufficient to live on, provided they meet certain conditions.

Expected Total Utility

The sum of satisfaction or benefit that a consumer anticipates receiving from consuming different quantities of goods and services.

Utility

The satisfaction or benefit derived by consuming a product; thus the desire to obtain a good or service.

Certain Income

Income that is guaranteed or known, without any risk of fluctuation or loss.