Rasec

it is not solely the size of the outlay

you may calc if you wish:

for A): -

NPV = -1.0 + 1.0/(1+x) + (-0.1)/(1+x)^2

Let NPV = 0 we get IRR.

so we need to solve this Quadratic Equation.

for y=ax^2+bx+c

we have x1=(1/2a)*(-b +(b^2-4ac)^0.5) AND x2=(1/2a)*(-b -(b^2-4ac)^0.5)


just solve it. if you get two different but meaningful X , that is multiple IRR



Edited 1 time(s). Last edit at Wednesday, May 26, 2010 at 04:53AM by coshair.