Which of the Following Statements Is CORRECT? Assume That the Project

question 91

Multiple Choice

Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows.

• A) If Project A has a higher IRR than Project B, then Project A must also have a higher NPV.
• B) The IRR calculation implicitly assumes that all cash flows are reinvested at the cost of capital.
• C) The IRR calculation implicitly assumes that cash flows are withdrawn from the business rather than being reinvested in the business.
• D) If a project has normal cash flows and its IRR exceeds its cost of capital, then the project's NPV must be positive.
• E) If Project A has a higher IRR than Project B, then Project A must have the lower NPV.

---

Definitions:

Legal Action

The process of taking disputes to a law court or undergoing legal proceedings related to employment issues.

Evaluate Performance

The systematic assessment of an employee's job performance, skills, and productivity over a specific period.

Performance Standards

Defined expectations for an employee's work conduct and outcomes, against which their actual performance is measured for appraisal and improvement purposes.

Strategic Objectives

Long-term goals set by an organization to achieve its overall strategy and mission.