One problem with IRR as an evaluation technique is that multiple IRRs can occur when the project has both positive and negative future cash flows.

Question

Quizplus · Accepted Answer

This is true. When a project has both positive and negative future cash flows, there can be multiple IRRs, making it difficult to interpret the results of the analysis. This is known as the "multiple IRR problem."

One Problem with IRR as an Evaluation Technique Is That