A Necessary Condition for Multiple Internal Rates of Return Is

question 38

Multiple Choice

A necessary condition for multiple internal rates of return is that one or more of the net cash flows in the later years of a project's life must:

• A)be positive.
• B)be negative.
• C)exceed the required rate of return.
• D)be greater than the initial outlay.

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Definitions:

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by massive unemployment and the collapse of financial institutions.

Dispossessed Farmers

Farmers who have lost their land and livelihood, often due to economic, political, or environmental pressures.

Metropolitan Statistical Area (MSA)

An area with at least one major city of 50,000 or more inhabitants that is surrounded by adjacent counties that are socially and economically integrated with the city core.

Megacity

A metropolitan area with a total population in excess of ten million people.