A Project Will Have More Than One IRR If

question 49

Multiple Choice

A project will have more than one IRR if:

• A)the IRR is positive.
• B)the IRR is negative.
• C)the NPV is zero.
• D)the cash flow pattern exhibits more than one sign change.
• E)the cash flow pattern exhibits exactly one sign change.

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Definitions:

Zero Slope

A characteristic of a line on a graph indicating that there is no change in the variable measured on the y-axis for any change in the variable on the x-axis.

Horizontal

Pertaining to a flat or level approach in structure or placement, often referring to the arrangement of elements in diagrams, graphs, or organizational layouts.

Demand

The quantity of a product or service that consumers are willing and able to purchase at a given price over a specific period of time.

Prices

The amount of money required to purchase a good, service, or asset.