The IRR rule is reliable for ▼ . Unless all of the ▼ positive negative cash flows of the project precede the ▼ positive negative ones, the IRR rule may give the wrong answer and should not be used. Furthermore, there may be multiple IRRs or the IRR may not exist.
Added by Kristina P.
Step 1
Step 1: The IRR (Internal Rate of Return) rule is reliable for evaluating investment projects that have conventional cash flows, meaning that the cash flows are initially negative (an investment) followed by a series of positive cash flows (returns). Show more…
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