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A project has multiple IRRs because of multiple inflows and outflows throughout the project's life. Which...

A project has multiple IRRs because of multiple inflows and outflows throughout the project's life. Which should you use in determining whether or not to accept the project, the highest, the lowest, or the intermediate IRR? Discuss your answer

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In case of a project with single IRR, it is always preferred to accept the project if IRR is greater than required rate of return or hurdle rate. In case of a project with multiple IRR,  it is not exactly clear which IRR to compare with the hurdle rate. Multiple IRR rates defines the range (Highest,lowest or intermediate) of IRR within which NPV is positive so in this situation of multiple IRR and invalid assumption of IRR i.e. reinvestment of cash flow at a rate equal to IRR, it is always preferred to take your decision related to project using NPV method

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