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 will have more than one IRR if the cash flow pattern exhibits more than one sign change. This means that there are multiple periods of both positive and negative cash flows. In such scenarios, the project can have multiple IRRs, making it difficult to determine the exact rate of return.

A Project Will Have More Than One IRR If