Which of the following statements are correct? The internal rate of return (IRR) generated by a positive cash flow stream of n payments. (a)is always smaller or equal than +1 (b)is always given by the solution of a quadratic equation (c)is always bigger or equal than -1 (d)can be 17 for a suitable cashflow (e)can be -2 for a suitable cashflow

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 15MC: The IRR method assumes that cash flows are reinvested at _________. A. the internal rate of return...
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Which of the following statements are correct? The internal rate of return (IRR) generated by a positive cash flow stream of n payments.

(a)is always smaller or equal than +1

(b)is always given by the solution of a quadratic equation

(c)is always bigger or equal than -1

(d)can be 17 for a suitable cashflow

(e)can be -2 for a suitable cashflow

 

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