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In capital budgeting, how many internal rates of return can a project with non-normal cash flows have?

Correct answer D. Multiple

Explanation

Non-normal cash flows change sign more than once, and each sign change can produce another root of the NPV equation, so such projects may have multiple IRRs.

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In capital budgeting, how many internal rates of return can a project with non-normal cash flows have?

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In capital budgeting, how many internal rates of return can a project with non-normal cash flows have?

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