Originally Posted by

**GhostAccount** Let me take the investment that I mentioned in the example

The following is an investment that is equivalent to our original investment. It too has an false IRR of 99,999,999,900%

Code:

-1 1,000,000,001 -2,000,000,000 1,000,000,000

I was checking the numbers in my cubic equation solver and noted that the IRR for 2nd investment was off by 100%

It seems I made typing errors when entering the cash flows

Here are the correct cash flows that yield the exact IRR

Code:

-1 1,000,000,002 -2,000,000,001 1,000,000,000

The same holds true for any other Abraham Transforms of this investment

Here are a few including the original investment and then the 1st, 2nd and 3rd degree transforms whose results may be confirmed using Quadratic, Cubic and Quartic formulas

Code:

-1 1,000,000,000
-1 1,000,000,001 -1,000,000,000
-1 1,000,000,002 -2,000,000,001 1,000,000,000
-1 1,000,000,003 -3,000,000,003 3,000,000,001 -1,000,000,000