1. What is the internal rate of return? Optional Answers: 1. 9.08 percent 2. 9.16 percent 3. 9.58 percent 4. 9.23 percent 2. A situation in which accepting one investment prevents the acceptance of another investment is called the: Optional Answers: 1. net present value profile. 2. operational ambiguity decision. 3. mutually exclusive investment decision. 4. multiple rates of return decision. 3. The problem of multiple IRRs can occur when: Optional Answers: 1. There is only one sign change in the cash flows. 2. The first cash flow is always positive. 3. The cash flows decline over the life of the project. 4. There is more than one sign change in the cash flows.