0 Lazy_PuppetBeginner Asked: January 21, 20222022-01-21T18:11:37+05:30 2022-01-21T18:11:37+05:30In: Corp. Finance (CFA L1) multiple irr 0 please explain Share Sorry, you do not have permission to answer to this question. 2 Answers Oldest Gaurav@G Advanced 2022-01-21T18:20:22+05:30Added an answer on January 21, 2022 at 6:20 pm This answer was edited. cf0=-50 cf1=100 cf2=0 cf3=-50 2nd npv I=32 arrow down= 26 npv 2nd case change I=62 NPV=0 HENCE with zero and 62 irr npv can be zero(C) Aabhas Verma01 The Official Nerd 2022-01-21T18:23:39+05:30Added an answer on January 21, 2022 at 6:23 pm Use the discount rates given in the option as Kc and find out NPV. CF0=-50 CF1=100 CF2=0 CF3=-50 If you use I= 0% and 62%.You will get NPV as Zero. So, option C is the correct answer.
cf0=-50
cf1=100
cf2=0
cf3=-50
2nd npv
I=32 arrow down= 26 npv
2nd case
change I=62
NPV=0
HENCE with zero and 62 irr npv can be zero(C)
Use the discount rates given in the option as Kc and find out NPV.
CF0=-50
CF1=100
CF2=0
CF3=-50
If you use I= 0% and 62%.You will get NPV as Zero. So, option C is the correct answer.