Question

In: Finance

When can a series of cash flows have MORE THAN one IRR?

When can a series of cash flows have MORE THAN one IRR?
            a first cash flow is negative and all remaining cash flows are positive
            b first cash flow is positive and all remaining cash flows are negative
            c some cash flows after first year are positive and some cash flows are negative
            d can never have more than one IRR

Solutions

Expert Solution

A Project has Multiple IRRs if the Cashflows are Non Conventional. It means some cash flows after first year are positive and some cash flows are negative.

Answer C


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