A project will have more than one IRR if:
A)the IRR is positive.
B)the IRR is negative.
C)the NPV is zero.
D)the cash ﬂow pattern exhibits more than one sign change.
E)the cash ﬂow pattern exhibits exactly one sign change.

Question

Quizplus · Accepted Answer

A project can have multiple IRRs if the cash flow pattern exhibits more than one sign change. This occurs when the project has non-conventional cash flows, where negative cash flows occur after positive ones or vice versa. In such cases, the IRR equation can have multiple solutions, and the project will have multiple IRRs.

A Project Will Have More Than One IRR If