Question: Using the online calculator from the previous problem, find the IRR for a project with cash flows of $500, $1,200, and $400. What is going

Using the online calculator from the previous problem, find the IRR for a project with cash flows of −$500, $1,200, and −$400. What is going on here?

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You have a project that has an initial cash outflow of −$20,000 and cash inflows of $6,000, $5,000, $4,000, and $3,000, respectively, for the next four years. Go to www.datadynamica.com and follow the “Online NPV IRR Calculator” link. Enter the cash flows. If the required return is 12 percent, what is the IRR of the project? The NPV?

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