Which of the following statements about the internal rate of return (IRR) for a project with the following cash flow pattern is TRUE Year 0: -$ 2000 Year 1: $ 10000 Year 2: -$ 10000（）
A. It has a single IRR of approximately 38 percent.
B. It has a single IRR of approximately 260 percent.
C. It has two IRRs of approximately 38 and 260 percent.
参考答案：C
解析：
The number of IRRs equals the number of changes in the sign of the cash flow. In this ease, from negative to positive and then back to negative. Although 38 percent seems appropriate, one should not automatically discount the value of 260 percent. Check answers by calculation: 10000/1.38-10000/1.382=1995.38 And 10000/3.6-10000/3.62=2006.17 Both discount rates give NPVs of approximately zero and thus, are IRRs.