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?

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    • Avatar of wannabe1988wannabe1988
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        • CFA Level 1
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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 

      • Avatar of AdaptPrepAdaptPrep
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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%.

        • Avatar of googs1484googs1484
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            • CFA Level 3
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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. 

          • Avatar of AdaptPrepAdaptPrep
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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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