MULTIPLE RATES OF RETURN


Meaning of MULTIPLE RATES OF RETURN in English

More than one rate of return from the same project that make the net present value of the project equal to zero. This situation arises when the I.R.R. method is used for a project in which negative cash flows follow positive cash flows. For each sign change in the cash flows, there is a different rate of return .

Campbell R. Harvey. Hypertextual finance English glossary.      Английский словарь гипертекстовых финансов.