Multiple Internal Rates of Return Can Occur When There Is

question 12

Multiple Choice

Multiple internal rates of return can occur when there is (are) :

• A) large abandonment costs at the end of a project's life
• B) a major shutdown and rebuilding of a facility sometime during its life
• C) more than one sign change in the pattern of cash flows over a project's life.
• D) all of the above are correct

---

Definitions:

Phosphorus Sink

An ecosystem or part of an ecosystem that absorbs more phosphorus than it releases, often leading to phosphorus accumulation.

Mineable Phosphate Rocks

Rock formations that contain substantial amounts of phosphate minerals, which are mined for use as fertilizers and other chemical products.

Marine Sediments

Deposits of organic and inorganic particles that accumulate on the ocean floor.

Denitrification

The conversion of nitrate (NO3) to nitrogen gas (N2) by certain bacteria (denitrifying bacteria) in the soil; part of the nitrogen cycle.