One problem with the decision criterion of IRR is that if cash flow is not standard,there is a possibility of multiple IRRs for a single project.

Name: One problem with the decision criterion of IRR is that if cash flow is not standard,there is a possibility of multiple IRRs for a single project.
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Question

Quizplus · Accepted Answer

This is true. When cash flows are not standard, there may be changes in the sign of cash flows, leading to multiple IRRs. This can create confusion and make decision-making difficult.

One Problem with the Decision Criterion of IRR Is That