Which of the Following Statements Is CORRECT

question 37

Multiple Choice

Which of the following statements is CORRECT?

• A) If two projects are mutually exclusive, then they are likely to have multiple IRRs.
• B) If a project is independent, then it cannot have multiple IRRs.
• C) Multiple IRRs can occur only if the signs of the cash flows change more than once.
• D) If a project has two IRRs, then the smaller one is the one that is most relevant, and it should be accepted and relied upon.
• E) For a project to have more than one IRR, then both IRRs must be greater than the WACC.

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