medium · Principles of Finance capital-budgeting
Under what condition might a project yield multiple internal rates of return (IRRs)?
- When the project's initial investment is significantly larger than its subsequent inflows.
- When the firm uses a variable cost of capital to evaluate the project.
- When the project's cash flows change sign more than once over its life.
- When the project has a positive NPV at all discount rates below the hurdle rate.
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