CFA CFA Level 1 How to calculate one or more IRR for unconventional cash flow?

How to calculate one or more IRR for unconventional cash flow?

  • This topic has 3 replies, 3 voices, and was last updated Jul-18 by AdaptPrep.
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      Hello everyone, does anyone know how to calculate the second IRR for the example below? any idea if this can be done via calculator (BA 2 plus) as well?

      Many thanks!

      al rate of 

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      That’s not required in the level one curriculum.  Level ii it is I believe but I haven’t gotten to corp fin for the level ii just yet. 

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      wannabe1988, you can solve these with a lot of algebra work. Or, you can use an easy trick. Plug the answer choices into the equation, and see if they work:

      Our roots are 0% and 62%.

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      googs1484 said:
      That’s not required in the level one curriculum.  Level ii it is I believe but I haven’t gotten to corp fin for the level ii just yet. 

      This question is taken straight from the official CFA Level I material (reading 35, question 14).

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