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

question 42

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• D) The IRR calculation implicitly assumes that cash flows are withdrawn from the business rather than being reinvested in the business.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

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Definitions:

Sounds

Acoustic waves that propagate through air or another medium, which can be perceived when they make contact with an individual's or an animal's ear.

Voices

Refers to the sounds produced by humans as they speak or sing.

Sensory Experiences

Sensory experiences are perceptions gathered through the five senses - sight, hearing, smell, taste, and touch, shaping how individuals perceive the world around them.

Hallucinations

Perceptual experiences that occur without an external stimulus, often vivid and convincing, affecting any of the senses.