If a project has multiple IRRs, the highest one is assumed to be correct.

Question

Quizplus · Accepted Answer

If a project has multiple IRRs, it means that there are multiple discount rates at which the project's net present value is equal to zero. In this scenario, it is not sufficient to rely on the highest IRR alone to make investment decisions. Instead, other measures such as net present value and profitability index should be considered to determine the viability of the project.

If a Project Has Multiple IRRs, the Highest One Is