Question
Project Black Swan requires an initial investment of $115,000. It has positive cash flows of $140,000 for each of the next two years. Because of
Project Black Swan requires an initial investment of $115,000. It has positive cash flows of $140,000 for each of the next two years. Because of major demolition and environmental clean-up costs, cash flow for the third and final year of the project is $(170,000). Which of the following is correct?
A - the project is unacceptable at any required rate of return. This project might have more than one IRR.
B- All possible IRRs for this project are negative
C- This project might have more than one IRR but only one MIRR
D- The project may have three IRRs
E- It is not possible to compute an IRR for this project.
Please guide me through this problem. Thank you
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