The phenomenon called "multiple internal rates of return" arises when two or more mutually exclusive projects that have different lives are compared to one another.

Question

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The phenomenon of "multiple internal rates of return" occurs when a project has unconventional cash flows (i.e., cash flow signs change more than once throughout the project's life), not specifically when comparing mutually exclusive projects with different lives.

The Phenomenon Called "Multiple Internal Rates of Return" Arises When