# Calculating IIR with a non-simple cash flow

Attached are two images of two problems and my two solutions. I feel fairly comfortable with 7-11 but would like you to double check it. 7-13 does not have a good example in the book. I did a present worth calculation and solved for i - it was a quadratic equation. However, I get 0% and 50% as my answer. This is counter-intuitive. Where did I go wrong?

Thank you.

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#### Solution Preview

7.11 is incorrect. the correct answer is 10% and not 11%. The step x=-1331 and

-5000x2+4840=-1331

is incorrect. You cannot break the euqtion like this.

7.13 As the sign for cash flows is changing twice, we will have two values of IRR in this ...

#### Solution Summary

The expert calculates the IRR with a non-simple cash flow.

$2.19