When may one project have several possible IRRs?
AAll inflows are equal
BLife is under one year
COutlay is very large
DSigns change more than once
Answer & Solution
Correct answer: D. Signs change more than once
If cash flow signs change more than once, the NPV equation can have multiple solutions.
Keep practising Payback Period
Browse all Payback Period questions for CA Inter, or explore more Financial Management topics.
Related questions
Why may payback overlook a valuable long-life project?Rs 1,000 is invested, returning Rs 500 at the end of years 1 and 2. Payback?Energy payback period is the time over which what equals energy spent?Which of these is a simplified capital budgeting method?Surplus cash from a firm's present and past earnings is called what?The real value of capital budgeting lies mainly in doing what?Which technique expresses NPV as an annualised cash flow?For mutually exclusive projects, choosing the highest IRR may select a project with