Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:Are there multiple IRRs for the following cash-flow sequence? How many are possible according to Descartes' rule of signs? If = 11% per year, what is the ERR for the cash flows of
this project? Let MARR= 11% per year
There is(are)
EOY
0
Cash Flow (5) 110
1
80
2 3
50 20
4
1.840
IRR(s) for the given cash-flow sequence
A maximum of
IRR value(s) is(are) suggested by the Descartes nule of signs
The ERR for the cash flows of this project is (Round to two decimal places)
6
560
6
520 370
8
340
9
190
10
140
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