discount rates the produce zero NPV discount, produce

clearlycanadian

how do i calulate this??

CF -50, 100, 0 , - 50

how many discount rates produce a zero NPV for this project? I know one of them is zero.. how do i get the other?

soddy1979

Solve the cubic equation.

50(1+r)exp3 -100(1+r)exp2 +50 = 0

Finding the roots of a cubic equation is not straightforward.
It can have all real roots or 1 real and 2 complex conjugate roots.

just out of curiosity, will such questions be asked in the exam?

FVPV

I doubt it. Test problems are very straightforward and require little to no calculation. A trial and error problem like this would seem out of place.