
Multiple internal rates of return can occur when there is (are) :
A) large abandonment costs at the end of a project's life
B) a major shutdown and rebuilding of a facility sometime during its life
C) more than one sign change in the pattern of cash flows over a project's life.
D) all of the above are correct
Correct Answer:
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Q2: The internal rate of return method assumes
Q5: When a project has multiple internal rates
Q7: If a net present value analysis for
Q12: In the absence of capital rationing, the
Q12: In the case of mutually exclusive projects,
Q13: The relationship between NPV and IRR is
Q13: The net present value method assumes that
Q14: In order to compensate for inflation in
Q15: The objective in solving capital rationing problems
Q17: The advantages of the payback approach include
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