Texas Instruments BA II PLUS User Manual page 136

When There Are Two or More Sign Changes
When a sequence of cash flows has two or more sign changes,
there may be multiple solutions for
• There is at least one solution.
• There may be as many solutions as there are sign changes.
If there are multiple solutions, the calculator displays the one
closest to zero. However, the displayed solution has no
financial meaning. Thus, you should use caution in making
investment decisions based on an
stream with more than one sign change.
The following time line shows a sequence of cash flows with
three sign changes. There may be one, two, or three solutions
for .
IRR
When Solving a Complex Problem
When you are solving very complex cash-flow problems, the
calculator may not be able to find
When this is the case, the calculator displays
limit exceeded).
130
Sign
change
Sign
change
.
IRR
computed for a cash-flow
IRR
Sign
change
even if a solution exists.
IRR
Error 7
BA II PLUS™ Calculator
(iteration