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A project has a cash flow of -$50,000 at time 0, a cash flow of $10,000 at time 1 year, and a cash flow of
A project has a cash flow of -$50,000 at time 0, a cash flow of $10,000 at time 1 year, and a cash flow of $15,000 at time 2 years. Assuming ordinary economic conditions, what is the IRR of these cash flows?
A. The project has a double IRR of -17.16%, corresponding to the double root of the equation defining the IRR.
B. The IRR is about 34%.
C. The cash flows do not have an IRR under normal economic conditions.
D. The IRR is -34.32%.
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