Which of the Following Statements Is Most Correct

question 43

Multiple Choice

Which of the following statements is most correct?

• A) If a project with normal cash flows has an IRR which exceeds the cost of capital, then the project must have a positive NPV.
• B) If the IRR of Project A exceeds the IRR of Project B, then Project A must also have a higher NPV.
• C) The modified internal rate of return (MIRR) can never exceed the IRR.
• D) Answers a and c are correct.
• E) None of the answers above is correct.

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Definitions:

Fluid Intelligence

The skill of logically addressing and resolving challenges in unfamiliar scenarios without the aid of existing knowledge.

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The collective opinions, beliefs, and attitudes of a society or community towards various topics or issues.