Investment A has the following cash flows: 200,200,300,200 200 Investment B has

Question

Investment A has the following cash flows: 200,200,300,200 200 Investment B has the following cash flows: 300,300,300,300,300 Both investments have a cost of 350 initially. Indicate which registers, financial or cash flow, can be used to determine the IRR of each investment

a. A's IRR can be determined with either financial or cash flow registers; B's IRR with only cash flow registers

b. Both investment IRRs can be determined with financial or cash flow registers

c. A's IRR can be determined with the cash flow registers; B's IRR with either financial or cash flow registers.

d. Both IRRs can be determined with the cash flow registers only.

Explanation / Answer

A's IRR can be determined with the cash flow registers; B's IRR with either financial or cash flow registers.

A's IRR can be determined with the cash flow registers; B's IRR with either financial or cash flow registers.

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