Explain The Concept Of Multiple Internal Rate Of Return?

1.	Explain The Concept Of Multiple Internal Rate Of Return?
Answer» In cases where project cash flows CHANGE signs or reverse during the life of a project for example, an initial cash outflow is FOLLOWED by cash inflows and subsequently followed by a major cash out-flow, there may be more than one internal RATE of return (IRR). In cases where project cash flows change signs or reverse during the life of a project for example, an initial cash outflow is followed by cash inflows and subsequently followed by a major cash out-flow, there may be more than one internal rate of return (IRR).

Answer»

In cases where project cash flows CHANGE signs or reverse during the life of a project for example, an initial cash outflow is FOLLOWED by cash inflows and subsequently followed by a major cash out-flow, there may be more than one internal RATE of return (IRR).

In cases where project cash flows change signs or reverse during the life of a project for example, an initial cash outflow is followed by cash inflows and subsequently followed by a major cash out-flow, there may be more than one internal rate of return (IRR).

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