Question

The possibility that more than one discount rate can cause the net present value of an investment to equal zero is referred to as:

Answer 1

Answer:

Multiple rates of return

Explanation:

The multiple rates of return occur when the company wants to make the net present value to zero that means the initial investment should be equal to the present value of cash inflows after considering the discounting factor and this situation occurs when the internal rate of return has the negative cash flows that followed the positive cash flows

hence, the third option is correct