During project evaluation, projected cash flows can change signs from positive to negative and back again. If the signs change more than once, it is best to a. not bother calculating the IRR. b. reject the project. c. not bother calculating the NPV. d. accept the project.
During project evaluation, projected cash flows can change signs from positive to negative and back again. If the signs change more than once, it is best to a. not bother calculating the IRR. b. reject the project. c. not bother calculating the NPV. d. accept the project.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter12: Capital Investment Decisions
Section: Chapter Questions
Problem 16MCQ: Using IRR, a project is rejected if the IRR a. is equal to the required rate of return. b. is less...
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Transcribed Image Text:During project evaluation, projected cash flows can change signs from positive to negative and back again. If the signs
change more than once, it is best to
a. not bother calculating the IRR.
b. reject the project.
c. not bother calculating the NPV.
d. accept the project.
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