Multiple IRR Problems

CPROBLEM NO$.1$

An investment has an outlay of $$800$ today, an inflow of $$5,000$ at the end of $1$ year,

and an outflow of $$5,000$ at the end of $2$ years. What is its internal rate of return? If

the initial outlay were $$1,250,$ what would be its IRR? $($Hint: This case is an exception

rather than the rule.$)$