Question: For which situation is the IRR method most likely to give you the correct investment recommendation? A single project where we invest money today and

For which situation is the IRR method most likely to give you the correct investment recommendation?

A single project where we invest money today and next year and then recieve positive cash flows starting in year 2

Comparing two mutually exclusive projects where one project requires a much bigger initial investment than the other

Comparing two mutually exclusive projects where one project will have a much shorter duration than the other

A single project where we will invest money today, recieve positive cash flows in years 1-5, and then have a large negative cash flow in year 6 as we wind down the project

None of the above

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