A Project Will Have Only One Internal Rate of Return

question 27

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:

Economic Consultants

Professionals who provide expert advice on economic strategies, market analysis, policy assessment, and economic forecasting to businesses or government entities.

Expected Return

The average of all the possible returns from an investment, weighted by their likelihood.

Expected Return

The average of all possible returns from an investment, weighted by the likelihood of each outcome.

Expected Expense

The anticipated or forecasted cost for specific goods, services, or activities, often used for budgeting and financial planning purposes.