A project with conventional cash flows (one outflow then several inflows) has:
AMultiple IRRs
BA unique IRR
CNo IRR
DIRR equal to NPV
Answer & Solution
Correct answer: B. A unique IRR
1. Conventional cash flows = one sign change.
2. Yields a unique IRR.
3. Non-conventional flows (multiple sign changes) can give multiple IRRs.
_Source: ICAI BoS CA Inter Paper 6A, Ch 7 "Investment Decisions", §8 — IRR_