Question: IRR question. (write down Assumptions and your thinking) a) Define IRR, show equation. b) For a given project, can calculation give you two IRRs? If
IRR question. (write down Assumptions and your thinking) a) Define IRR, show equation. b) For a given project, can calculation give you two IRRs? If yes, when does it happen? Give a specific example. c) From a CFO point of view, you need one IRR to decide your cost of capital, which one should you use (or average) if you have two IRRs? Walk through your thinking.
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