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:

Primary Succession

The process of habitat colonization and ecosystem development in an area where no community previously existed, such as on bare rock.

Soil Formation

The process by which weathering of rock and organic interactions lead to the development of soil layers or horizons, essential for plant growth.

Lichens

Lichens are symbiotic organisms composed of fungi and either algae or cyanobacteria, known for their ability to grow on and weather rocks and other surfaces.

Plant Diversity

The variety and variability of plant species within a specific region, ecosystem, or the planet as a whole.