Most four positive internal rate of return values

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Given the following end-of-year cash flows, which one of the following statements is correct?

End of year 0: -$10

End of year 1: $20

End of year 2: -$5

End of year 3: $10

End of year 4: $5

End of year 5: $10

A) By Norstrom’s criterion, there will be at most four positive internal rate of return (IRR) values.

B) By Norstrom’s criterion, there will be at most one positive internal rate of return (IRR) value.

Reference no: EM131091531

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