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An investment has an outlay of $800 today, an inflow of $5,000 at the end of 1 year, and an outflow of $5,000 at the end of 2 years. What is its internal rate of return? If the initial outlay were $1,250, what would be its IRR? (Hint: This case is an exception rather than the rule.)

An investment has an inflow of $200 today, an outflow of $300 at the end of 1 year, and an inflow of $400 at the end of 2 years. What is its internal rate of return? (Hint: Try calculating NPVs for a wide range of required returns.)