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Project Y has following cash flows: C 0 = - 8 0 0 , C 1 = + 5 , 0 0 0 , and

Project Y has following cash flows: C0=-800,C1=+5,000,
and C2=-5,000. Calculate the IRRs for the project.
-44 percent and 11.6 percent.
25 percent and 400 percent.
-800+[5,0001+IRR]-[5,000(1+IRR)2]=0
or800[(1+IRR)2]-5,000(1+IRR)+5,000=0
This is a quadratic equation and has two roots.
]
{(5,000)
125 percent and 500 percent.
No IRRs exist for this project,
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