Under Certain Conditions, a Project May Have More Than One

question 39

True/False

Under certain conditions, a project may have more than one IRR.One such condition is when, in addition to the initial investment at time = 0, a negative cash flow (or cost) occurs at the end of the project's life.

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Definitions:

Check Amount

The sum of money written on a check that the drawee is directed to pay.

Book Balance

Book balance refers to the balance of an account according to the accounting records, which may differ from the actual available balance.

Cash Overage

A situation where the actual cash on hand exceeds the expected amount, often due to accounting errors or unrecorded transactions.