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Memphic Memphic
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Posts: 728
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6 years ago
Assuming that Dewey's cost of capital is 12% EAR, then the number of potential IRRs that exist for this problem is equal to:
A) 0
B) 1
C) 2
D) 12
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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Replies
wrote...
6 years ago
B
Explanation:  B) This problem begins with a positive cash flow that is followed by 12 negative (opportunity) cash flows, giving one change in the signs of the cash flows. This indicates that there will be one IRR for this problem.
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