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:

Caves Collapse

The sudden failure and falling in of a cave's ceiling or walls, often due to natural processes such as erosion or the removal of supporting material.

Sinkhole

A depression or hole in the ground caused by the collapse of a surface layer, often due to the dissolution of limestone or other carbonate rock by groundwater.

Dewatered Zone

An area from which significant amounts of water have been removed, often related to geological or artificial processes affecting soil and rock permeability.

Aquifer

An aquifer is an underground layer of water-bearing permeable rock, rock fractures, or unconsolidated materials through which groundwater can move.