Which Statement About Multiple IRRs Is True

question 92

Multiple Choice

Which statement about multiple IRRs is true?

• A)For a project to have more than one IRR, both IRRs must be greater than the WACC.
• B)If two projects are mutually exclusive, then they are likely to have multiple IRRs.
• C)If a project is independent, then it cannot have multiple IRRs.
• D)Multiple IRRs can occur only if the signs of the cash flows change more than once.