The problem of multiple IRRs can occur when:
A)there is only one sign change in the cash flows.
B)the first cash flow is always positive.
C)the cash flows decline over the life of the project.
D)there is more than one sign change in the cash flows.
E)None of the above.

Question

Quizplus · Accepted Answer

The problem of multiple IRRs can occur when there is more than one sign change in the cash flows. This can lead to multiple possible rates of return for the project, making it difficult to determine the true IRR.

The Problem of Multiple IRRs Can Occur When