Identify a characteristic of IRR. See the PV tables to help formulate your answer.

Present Value of $1 Received at the End of Periods

Note when viewing the present value table:
Factor: =
(1+r)"

Present Value of a $1 Annuity Received at the End of Each Period for n Periods

Note when viewing the present value table:
1-(1+r)"
Factor

Select a Choice Below

Every project can have only one IRR.

IRR is the rate required to get an NPV of zero for a series of cash flows.

IRR of a project can never be zero

IRR is used to evaluate short-term projects only