Ambiguity Specialists is evaluating the following project. What is the largest Internal Rate of Return associated with this project?

Year Cash Flow

0 -$10,000

1 $8,000

2 $10,000

3 $12,000

4 $14,000

5 -$40,000

Answers:

a. This project has zero IRRs

b. 12.57 percent

c. 86.45 percent

d. 101.09 percent

e. 62.27 percent