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:

Limited Liability

A legal principle that limits an investor's loss in a business venture to the amount of capital they have invested, protecting personal assets from business debts.

Certificate of Limited Partnership

A legal document registered with a state authority to form a limited partnership, outlining key details and compliance.

RULPA

The Revised Uniform Limited Partnership Act, a set of laws adopted by some states to govern the formation, operation, and dissolution of limited partnerships.

Expiration of Term

The end of a period during which an agreement, contract, or tenure was supposed to last.