Please help… How to compute multiple IRR using calculator? When entering all available numbers I can compute IRR, but how would I know isn’t there second IRR and how to find it? Thanks…

read your calculator’s manual. the number of IRR’s equals the number of sign changes in cash flows. thus if the flows are out, in, in, out, in, then there are 3 IRRs.

THX for help…

Dear Ance, in many questions, there are exactly two IRR. One is positive (and meant as the right answer), the other is negative (and should be omitted). Good luck, Daniel www.financial-exam.com