Which of the Following Statements Best Describes Normal Cash Flows

question 27

Multiple Choice

Which of the following statements best describes normal cash flows?

• 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) If a project has "normal" cash flows, then it can have only one real IRR, whereas a project with "non-normal" cash flows might have more than one real IRR.

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Definitions:

Pellagra

A vitamin deficiency disease most commonly caused by a lack of niacin (vitamin B3) in the diet, leading to dermatitis, diarrhea, dementia, and even death if untreated.

Vitamins

Essential nutrients that the body needs in small amounts to function and maintain health.

ATP

Adenosine triphosphate, an energy-carrying molecule found in the cells of all living things which fuels cellular processes.

Diffusion Force

A force arising from the concentration gradient that moves molecules from an area of high concentration to one of lower concentration.