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:

Special Causes

Unusual factors or events that impact the process and result in variations not accounted for by the existing process model.

Quality Control Variables

Variables that are monitored and controlled during a manufacturing or service process to ensure the quality of the output.

Continuous Measurement

A method of data collection that records the variability and full range of quantitative data points across a continuum.