In: Finance
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 |
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