A Project Has Normal Cash Flows

question 83

Multiple Choice

A project has normal cash flows. Its IRR is 15 percent and its cost of capital is 10 percent. Which of the following statements is incorrect?

• A) The project has only one negative cash flow.
• B) The project's MIRR is less than 15 percent but greater than 10 percent.
• C) The project's discounted payback is less than the project's payback.
• D) The project's NPV > 0.

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Definitions:

Preconceived Ideas

Beliefs, opinions, or notions formed in advance of having the evidence for their truth or usefulness, often leading to biases or misunderstandings.

Islam

A monotheistic religion founded in the 7th century based on the teachings of Prophet Muhammad as presented in the Qur'an.

Discriminatory

Showing bias or prejudice resulting in unfair treatment of individuals or groups based on characteristics such as race, age, or gender.

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The holiest day of the Jewish year, also known as the Day of Atonement, during which individuals reflect upon their actions and seek forgiveness for their sins.