Assume a Project Has Normal Cash Flows (I

question 54

Multiple Choice

Assume a project has normal cash flows (i.e., the initial cash flow is negative, and all other cash flows are positive) . Which of the following statements is most correct?

• A) All else equal, a project's IRR increases as the cost of capital declines.
• B) All else equal, a project's NPV increases as the cost of capital declines.
• C) All else equal, a project's MIRR is unaffected by changes in the cost of capital.
• D) Answers a and b are correct.
• E) Answers b and c are correct.

---

Definitions:

Programming Languages

Programming languages are sets of instructions and rules used to communicate with computers to create software programs and algorithms.

Complete Copies

Refers to making full, exact duplicates of data structures, objects, or files, preserving all their properties and values.

Compilers

Programs that convert the source code written in a programming language into machine code that can be executed by a computer.

Structure

A compound data type in programming that allows for the combination of data items of different types.