#14 Capital Budgeting at Start Assignment Due Thursday by 11:59pm Points 10 Submitting a text entry box or a file upload File Types doc, pdf, png, jpg, jpeg, xlsx, xlsm, and xls The IRR rule suffers from several drawbacks, one of which has to do with projects of "unconventional cashflows." (5 points) Use the table at the bottom of page 4 in the course workbook to create a plot of discount rate vs NPV (please review the Excel work we did in class for IRR.) You can choose your own range of discount rates. (5 points) What is the problem with applying the IRR rule to this case? Use your plot to answer this question. Previous Next However, the IRR rule is not perfect for all investment decisions. Here is why. When we are faced with unconventional cash flows (defined as a type of cash flows that change signs more than once), there will be more than one IRR. Here's an example of an unconventional cash flow: Year 0 1 2 3 Cash Flows -170 160 160 160 -520 4 4 #14 Capital Budgeting at Start Assignment Due Thursday by 11:59pm Points 10 Submitting a text entry box or a file upload File Types doc, pdf, png, jpg, jpeg, xlsx, xlsm, and xls The IRR rule suffers from several drawbacks, one of which has to do with projects of "unconventional cashflows." (5 points) Use the table at the bottom of page 4 in the course workbook to create a plot of discount rate vs NPV (please review the Excel work we did in class for IRR.) You can choose your own range of discount rates. (5 points) What is the problem with applying the IRR rule to this case? Use your plot to answer this question. Previous Next However, the IRR rule is not perfect for all investment decisions. Here is why. When we are faced with unconventional cash flows (defined as a type of cash flows that change signs more than once), there will be more than one IRR. Here's an example of an unconventional cash flow: Year 0 1 2 3 Cash Flows -170 160 160 160 -520 4 4