In capital budgeting, a project with non-normal cash flows can have ____________ internal rates of return (IRR)?

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Multiple - When a project has non-normal cash flows, meaning cash flows change signs more than once during the project life, it can lead to multiple internal rates of return (IRRs). This happens because the IRR equation may have more than one solution due to multiple sign changes in cash flows.

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In capital budgeting, a project with non-normal cash flows can have ____________ internal rates of return (IRR)?

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MCQ Detailed View

In capital budgeting, a project with non-normal cash flows can have ____________ internal rates of return (IRR)?

Detailed Explanation

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In cash flow analysis, two projects are compared using a common life approach, which is classified as…

In capital budgeting, the Internal Rate of Return (IRR) of a project is classified as its ____________?…

In evaluating independent projects, the results of Internal Rate of Return (IRR) and Net Present Value…