Under certain conditions, a project may have more than one IRR. One such condition is when, in addition to the initial investment at time $=0,$ a negative cash flow $($or cost$)$ occurs at the end of the project's life.

$($Choose the option which best represents the statement$)$

Question $2$ options:

Multiple IRRs suggest a flawed project evaluation.

Projects with multiple IRRs are always high risk.

Negative cash flows always lead to a single IRR.

The timing of cash flows affects the number of IRRs.