Which of the Following Statements Is CORRECT

question 33

Multiple Choice

Which of the following statements is CORRECT?

• A) If a project with normal cash flows has an IRR greater than the WACC,the project must also have a positive NPV.
• B) If Project A's IRR exceeds Project B's,then A must have the higher NPV.
• C) A project's MIRR can never exceed its IRR.
• D) If a project with normal cash flows has an IRR less than the WACC,the project must have a positive NPV.
• E) If the NPV is negative,the IRR must also be negative.

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Definitions:

Diagnostic Procedure

A technique or test performed to identify the nature or cause of a medical condition.

Newborn

A baby from birth to about 2 months of age.

Hearing Test

A clinical examination conducted to measure a person's ability to hear various frequencies and intensities of sounds.

Therapeutic Treatment

A method or use of remedies to treat or cure a disease or condition.