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:

Scatterplot

A type of graph in statistics that displays values for typically two variables for a set of data.

Positive Correlation

A relationship between two variables in which both variables move in tandem, meaning that as one variable increases or decreases, the other does as well.

Normal Curve

A symmetrical, bell-shaped curve that represents the distribution of many physical and psychological attributes.

Distribution

The act of sharing something out among a number of recipients, or the way in which something is spread or dispersed.