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:

Categorical Variable

A variable that can take on one of a limited, and usually fixed, number of possible values, assigning each individual to a particular group or nominal category.

Type Of Car

Refers to classifications of cars based on characteristics such as make, model, body style, engine size, and usage purposes.

Nominal Level

The simplest level of measurement for variables, where data can be categorized but not ranked or ordered meaningfully.

Church Attendance

The frequency with which individuals or a demographic group attends church services.