A Project May Have Multiple IRRs When

question 26

Multiple Choice

A project may have multiple IRRs when

• A) the project generates an alternating series of net cash inflows and outflows
• B) the project generates an immediate cash inflow followed by cash outflow
• C) the project has a negative NPV
• D) the project is of considerably large scale

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Definitions:

Wheat

A cereal grain cultivated worldwide and a staple food in many parts of the world, used for making flour, bread, and other food products.

Wine

An alcoholic beverage made from fermented grapes or other fruits, with variations in taste and strength depending on the type of grape and production process.

Production Possibility Frontier

An image projecting the ultimate production capacities for a duo of items, rooted in a given assortment of inputs including resources and extra aspects.

Technology Level

The current state of technological advancement and availability in a society or sector.