For example, if a project generates a positive cash flow in the first year, a negative one in the second, and then a positive cash flow in the third year, the resulting IRR can have more than one ...

But IRR is also useful ... three years would then be $5,000 divided by $10,000, or 50 percent. ROI can also be negative. Using the same example, suppose the business spends $10,000 and after ...