Capital budgeting situations in which negative cash flows

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Reference no: EM131902378

A mining company is deciding whether to open a strip mine, which costs $2 million. Cash inflows of $13 million would occur at the end of Year 1. The land must be returned to its natural state at a cost of $12 million, payable at the end of Year 2.

Think of some other capital budgeting situations in which negative cash flows during or at the end of the project's life might lead to multiple IRRs.

Reference no: EM131902378

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