How can one comment on IRR by merely looking at the cashflows given. Take for example: Year Cashflows 0 -10000 1 15000 2 5 What will it give unique solution, no solution, multiple solution etc.? Please explain.
Whenever the series of cashflows has a string of outflows followed by a string of inflows (i.e. only one change in the sign) there will always be a single unique solution. If there are multiple changes in sign (e.g. -1000, +50, -100, +400 ...) then there can be multiple solutions. Some examples can have no solution at all, such as a string of outflows with no inflows.
Not really.... Example: (t0=-2, t1= 1,333, t2= 1) IRR solution r= 0,11506 AND r= -1,4484 Check it out : http://www.effas-ebc.org/fileadmin/...e_IRR_Equation_and_its_multiple_solutions.pdf For an original text of Yuri Shestopaloff: http://www.akvypress.com/downloads/9780981380094_IRR.pdf Enjoy your day
