The internal rate of return (IRR)is negative if
A)a project is losing money.
B)a cash inflow exceeds a cash outflow.
C)a project just breaks even.
D)a project is a simple investment.
E)IRR cannot be negative.

Question

Quizplus · Accepted Answer

A negative IRR occurs when the net present value of all cash flows from a project or investment is negative, indicating that the total costs outweigh the total returns, thus the project is losing money.

The Internal Rate of Return (IRR)is Negative If