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An actuary is considering purchasing a pocket calculator costing $ 8 0 . The Internal Rate of Return ( IRR ) of this investment is

An actuary is considering purchasing a pocket calculator costing $

80 .

The Internal

Rate of Return

(

IRR

)

of this investment is

800 % .

Which of the following statements is a logical interpretation of this IRR?

Several calculators should be purchased

The actuary has calculated the IRR incorrectly

The small initial investment has driven the high IRR

There must be multiple IRRs for this investment.

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