Multiple Rates of Return

Multiple Rates of Return

Arises when IRR method is used in relation to a project wherein positive cash flows are followed by negative cash flows. Denotes the occurrence of more than one rate of return for one project with differences in returns as and when cash flow sign changes. This results in NPV of the project equaling zero.

Related posts:

1. Portfolio Internal Rate of Return
2. Internal Rate of Return
3. Mean Return
4. Dollar-Weighted Rate of Return
5. Money Rate of Return