A Project Will Have Only One Internal Rate of Return

question 19

Multiple Choice

A project will have only one internal rate of return if

• A)the net present value is positive.
• B)the net present value is negative.
• C)the cash flows decline over the life of the project.
• D)there is a one-sign change in the cash flows.

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Definitions:

Litigation Process

A legal procedure involving the steps from the initial complaint through the final court decision.

Judgment

A formal decision or conclusion made by a court following a legal proceeding, which determines the outcome of the case.

Statement of Defence

A document filed in court by the defendant, outlining their defense and responding to the allegations made in the statement of claim.

Offer to Settle

A proposal made by one party to another during litigation to resolve the dispute outside of court, usually involving some form of compensation.