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Memphic Memphic
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Posts: 728
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6 years ago
One of the IRRs for Rearden's mining operation is closest to:
A) 0%
B) 10.6%
C) 12.4%
D) 72.0%
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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1 Reply

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wrote...
6 years ago
B
Explanation:  B)  CF0 = -100, CFj = 16, Nj = 11, CFj = -4, Nj = 1, Compute IRR = 10.58%.
The TI Calculator does not alert to the second IRR, while the HP Calculator gives an error because of multiple IRRs.
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