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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.
A negative externality:
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