If the sign of the cash flows for a project changes two times then the project has:
A) one IRR
B) two IRRs
C) three IRRs
D) None of the above

Question

Quizplus · Accepted Answer

The sign change in cash flows indicates that the project has multiple changes in direction, which would result in multiple IRRs. A project with only one sign change would have one IRR, and a project with no sign changes would have no IRRs.

If the Sign of the Cash Flows for a Project