When Several Sign Reversals in the Cash Flow Stream Occur

question 27

True/False

When several sign reversals in the cash flow stream occur, the IRR equation can have more than one positive IRR.

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Definitions:

Symbolic Thought

The capacity to use symbols, language, or other abstract representations to think about and communicate complex concepts.

Preoperational

The stage in Piaget's theory of cognitive development where children from about 2 to 7 years of age begin to engage in symbolic play and struggle with logic and the perspective of others.

Reversibility

The ability to recognize that numbers or objects can be changed or returned to their original state.

Preoperational Intelligence

Piaget’s term for cognitive development between the ages of about 2 and 6; it includes language and imagination (which involve symbolic thought), but logical, operational thinking is not yet possible at this stage.