Part B

Given the following unconventional cash flows, find:

Time, t	Cash flow, CFt, $m
0	-1
1	5.02
2	-9.4215
3	7.83365
4	-2.43425

i. The number of IRRs (cite which theorem you use to arrive at your answer)

ii. Prove your answer in part i by plotting the NPV profile in the domain of 0% through 50%. Use 1% interval again.

iii. Use the Solver function within Excel to find the discount rate at which the NPV is maximized.

Answer:

Question	Answer
No. of IRRs for the given cash flows series (an integer)
Discount rate for maximum NPV is at _____% (2 decimals)
List all the IRRs (from small to large, in %) (2 decimals)