Final answer:
The statement that IRR cannot handle multiple changes in cash flow directions and must be segmented into periods of cash inflows and outflows is false. IRR can indeed handle changes in cash flow direction, but multiple change occurrences may lead to multiple IRRs.
Step-by-step explanation:
The statement that IRR (Internal Rate of Return) cannot be calculated in the direction of cash flow changes during the measurement period is false. IRR is a financial metric used to evaluate the profitability of an investment by finding the discount rate that makes the net present value (NPV) of cash flows equal to zero. It can handle multiple changes in the cash flow direction. However, when there are multiple sign changes in cash flows, there can be multiple IRR values, which complicates the interpretation. It is not necessary to segment cash flows into separate periods of inflows and outflows, but a detailed analysis must be conducted to interpret all possible IRRs correctly when multiple changes in cash flow directions occur.