Question: projects with normal cash flows can have two or more real IRRs. Projects with normal cash flows must have two changes in the sign of

projects with "normal" cash flows can have two or more real IRRs. Projects with "normal" cash flows must have two changes in the sign of the cash flows, e

.

.,

from negative to positive to negative. If there are more than two sign changes, then the cash flow stream is "nonnormal". The "multiple IRR problem" can arise if a project's cash flows are "nromal". Projects with "normal" cash flows can have only one real IRR.

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