It is possible for a project to have more than one IRR if there is more than one sign change in the after-tax cash flows due to the project.

Question

Quizplus · Accepted Answer

If there are multiple sign changes in the cash flows, it is possible for there to be multiple IRRs. This is because each sign change represents a potential change in the direction of the cash flows, which can lead to multiple possible rates of return. However, it is important to note that having multiple IRRs is generally considered a disadvantage of the IRR method, as it can make it difficult to interpret the results of the analysis.

It Is Possible for a Project to Have More Than