hard20 pts · first answer countsirrcapital-budgeting

When IRR gives more than one answer

A mining project has cash flows of -100, +250 and -154 over three periods (a large clean-up cost at the end). What is the main problem with using IRR here?

A.IRR cannot be calculated for projects longer than two yearsB.The cash flow signs change more than once, so there can be multiple IRRsC.IRR is always negative when the last cash flow is negativeD.IRR ignores the initial investment

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When IRR gives more than one answer

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