Question: A project does not necessarily have a unique IRR. (Refer to the previous problem for more information on IRR.) Show that a project with the

A project does not necessarily have a unique IRR.

(Refer to the previous problem for more information on IRR.) Show that a project with the following cash flows has two IRRs: year 1, $20; year 2, $82; year 3,

$60; year 4, $2. (Note: It can be shown that if the cash flow of a project changes sign only once, the project is guaranteed to have a unique IRR.)

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