Question
1) A five-year project requires an investment of -128 and has the following cash flows in years 1 through 5, respectively (all cash flows in
1) A five-year project requires an investment of -128 and has the following cash flows in years 1 through 5, respectively (all cash flows in dollars): 194, -66, 234, 132, and 132. Without actually calculating any IRR, what is the maximum possible value any of the real IRRs could have? Give your answer as a percent with two decimals; e.g., 23.24
2) A four-year project requires an investment of -118 and has the following cash flows in years 1 through 4, respectively (all cash flows in dollars): 141, 262, 196, and 195. Without actually calculating any IRR, what is the minimum possible value any of the real IRRs could have? Give your answer as a percent with two decimals; e.g., 23.24
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