If the NPV (Net Present Value)of a project with multiple sign reversals is positive,then the project's required rate of return ________ its calculated IRR (Internal Rate of Return).
A) must be less than
B) must be greater than
C) could be greater or less than
D) The required rate of return cannot be determined without actual cash flows.

Question

Quizplus · Accepted Answer

For projects with multiple sign reversals, there can be multiple IRRs, so the required rate of return could be greater or less than any of the calculated IRRs.

If the NPV (Net Present Value)of a Project with Multiple