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A project has an ICO followed by inflows for 5 years and an outflow in year 6. What is the maximum number of IRRs that

A project has an ICO followed by inflows for 5 years and an outflow in year 6. What is the maximum number of IRRs that this project might have?

3

1

2

6

Multiple IRR are caused by:

A.

Cash inflows exceeding cash outflows

B.

Projects with only cash outflows

C.

Projects with only cash outflows

D.

Multiple sign changes in the cash flow stream

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