If the NPV (Net Present Value)of a project with multiple sign reversals is positive,then the project's required rate of return ________ its calculated IRR (Internal Rate of Return).
A) must be less than
B) must be greater than
C) could be greater or less than
D) Cannot be determined without actual cash flows.

Question

Quizplus · Accepted Answer

For projects with multiple sign reversals, there can be multiple IRRs, and the NPV being positive indicates that the required rate of return could be either greater or less than one of the IRRs.

If the NPV (Net Present Value)of a Project with Multiple