Which of the Following Statements Is CORRECT

question 82

Multiple Choice

Which of the following statements is CORRECT?

• A) For a project to have more than one IRR,then both IRRs must be greater than the WACC.
• B) If two projects are mutually exclusive,then they are likely to have multiple IRRs.
• C) If a project is independent,then it cannot have multiple IRRs.
• D) Multiple IRRs can occur only if the signs of the cash flows change more than once.
• E) If a project has two IRRs,then the smaller one is the one that is most relevant,and it should be accepted and relied upon.

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Definitions:

Competitions

Events or contests where participants strive to win by surpassing others in performance or skill.

There's

Contraction for "there is," used to indicate the existence of something.

She'll

Contraction of "she will" or "she shall," used to indicate future action.

77-Inch-Long

A measurement indicating something is seventy-seven inches in length.