medium · CFA Level I corp
Ironvale Mining is evaluating a project with unconventional cash flows: an initial investment of $1,000, followed by a payoff of 2,500 in Year 1, and a mandatory site restoration cost of 1,560 in Year 2. How many possible IRRs could this project have? Ironvale Mining is evaluating a project with unconventional cash flows: an initial investment of $1,000, followed by a payoff of 2,500 in Year 1, and a mandatory site restoration cost of 1,560 in Year 2.
- Always zero.
- Up to two.
- Exactly one.
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