alleryStart learning →Which pair of IRRs does the cash flow series -10, 21, -11 give?
A10% and 20%
B0% and 10%
C0% and 5%
D5% and 10%
Answer & Solution
Correct answer: B. 0% and 10%
Setting 10g squared minus 21g plus 11 to zero gives g of 1 and 1.1, so the rates are 0% and 10%.
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