Which of the Following Statements Is CORRECT

question 75

Multiple Choice

Which of the following statements is CORRECT?

• A) If a project has "normal" cash flows,then its IRR must be positive.
• B) If a project has "normal" cash flows,then its MIRR must be positive.
• C) If a project has "normal" cash flows,then it will have exactly two real IRRs.
• D) 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.
• E) 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.

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Definitions:

Checkable Deposits

Consist of money in bank accounts that can be drawn upon by writing a check or using a debit card, offering immediate liquidity.

Savings and Loans

Financial institutions that specialize in accepting savings deposits and making mortgage and other loans.

Credit Card Companies

Financial institutions that issue credit cards to consumers, facilitating electronic payment transactions and extending credit.

M1 Definition

A category of the money supply that includes all physical money like coins and currency, as well as demand deposits, and other liquid assets that can be quickly converted to cash.