We have a project with the following cash flows: 0 1 2 3 4 5 Cash flows -25 160 120 -300 60 -110 Without doing any NPV/IRR calculations, what can you say about how many IRRs this project might have? Briefly but explicitly tell me what you know about the number of IRRs, simply from looking at the above cash flows. Be sure to give a complete answer. A. 5 B. Up to 3 C. 1 D. At least 5 E. Up to 5 F. At least 3 G. 3 H. At least 4 I. We can't tell anything about the number of IRRs without calculating them. J. Up to 4 K. 4
We have a project with the following cash flows: 0 1 2 3 4 5 Cash flows -25 160 120 -300 60 -110 Without doing any NPV/IRR calculations, what can you say about how many IRRs this project might have? Briefly but explicitly tell me what you know about the number of IRRs, simply from looking at the above cash flows. Be sure to give a complete answer. A. 5 B. Up to 3 C. 1 D. At least 5 E. Up to 5 F. At least 3 G. 3 H. At least 4 I. We can't tell anything about the number of IRRs without calculating them. J. Up to 4 K. 4
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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We have a project with the following cash flows:
0 1 2 3 4 5
Cash flows -25 160 120 -300 60 -110
Without doing any NPV /IRR calculations, what can you say about how many IRRs this project might have? Briefly but explicitly tell me what you know about the number of IRRs, simply from looking at the above cash flows. Be sure to give a complete answer.
5
Up to 3
1
At least 5
Up to 5
At least 3
3
At least 4
We can't tell anything about the number of IRRs without calculating them.
Up to 4
4
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