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Glossary   >   M   >   "Multiple rates of return" Definition            Multiple rates of return 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. Glossary    Dictionary Search (powered by Google) WWW ITLOCUS.COM GLOSSARY.ITLOCUS.COM Translate a web page (powered by Google)      to German Spanish French Italian Portuguese Japanese Korean Chinese

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Multiple rates of return - 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.