A) Multiple sign changes in the cash flow create multiple IRRs for a single project. B) IRR is a rate of return rather than an absolute dollar measure of wealth. C) When evaluating mutually exclusive projects, IRR might rank them differently than NPV. D) The IRR assumes that all cash flows will be reinvested at the IRR while NPV use more realistic assumption that all cash flows will be reinvested at the required rate of return.
A, B, D are right C is wrong… ?
n/m about C was this a question, lol?
LOL all are right… I just point out the problems!
<< A) Multiple sign changes in the cash flow create multiple IRRs for a single project. >> TIP: no. of IRRs = number of times the cash flow “sign” changes