(Solution) - For each of the following investments compute the IRR a -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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For each of the following investments, compute the IRR.
a. The net cash flows are $-12,000 in the first year and +$15,000 in the second year. (Use the formula for two-period investments given in the text.)
b. The net cash flows are $-10,000 in the first year, +$5,000 in the second year, and +$6,000 in the third year. (Use the quadratic formula.)
c. The net cash flows are the same as in problem 10. (Use either the search method illustrated in Worked-Out Problem 10.5, or the automatic search feature of a spreadsheet program.)