Which of the Following Statements Is CORRECT

question 19

Multiple Choice

Which of the following statements is CORRECT?

• A) If a project has "normal" cash flows, then its MIRR must be positive.
• B) If a project has "normal" cash flows, then it will have exactly two real IRRs.
• C) The definition of "normal" cash flows is that the cash flow stream has one or more negative cash flows followed by a stream of positive cash flows and then one negative cash flow at the end of the project's life.
• D) If a project has "normal" cash flows, then it can have only one real IRR, whereas a project with "nonnormal" cash flows might have more than one real IRR.
• E) If a project has "normal" cash flows, then its IRR must be positive.

---

Definitions:

Expert Power

The influence and authority someone gains from possessing specific knowledge or expertise.

Social Power

is the capacity of an individual or group to influence the behavior, attitudes, or outcomes of others, typically within a social hierarchy or organization.

Position Power

The authority and influence attributed to a person's role or position within an organization.

Referent Power

The influence one possesses that stems from others' respect, admiration, or identification with them.