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:

Acetate

A salt or ester of acetic acid, often used as a solvent or in making synthetic fibers or plastics.

Ketone Bodies

Metabolic products produced during fatty acid metabolism, used by some tissues as an energy source when glucose is not available.

Beta Oxidation

A metabolic process in which fatty acids are broken down in the mitochondria to generate acetyl-CoA, a substrate for the citric acid cycle.

Acetyl CoA

A critical molecule involved in metabolism, linking the breakdown of carbohydrates, fats, and proteins to energy production.