The phenomenon called "multiple internal rates of return" arises when two or more mutually exclusive projects that have different lives are being compared.

Question

Quizplus · Accepted Answer

The phenomenon of "multiple internal rates of return" occurs when a project has unconventional cash flows (i.e., the cash flow sign changes more than once during the life of the project), not specifically when comparing mutually exclusive projects with different lives.

The Phenomenon Called "Multiple Internal Rates of Return" Arises When