Which of the Following Statements Is CORRECT

question 33

Multiple Choice

Which of the following statements is CORRECT?

• A) If a project with normal cash flows has an IRR greater than the WACC,the project must also have a positive NPV.
• B) If Project A's IRR exceeds Project B's,then A must have the higher NPV.
• C) A project's MIRR can never exceed its IRR.
• D) If a project with normal cash flows has an IRR less than the WACC,the project must have a positive NPV.
• E) If the NPV is negative,the IRR must also be negative.

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Definitions:

Adaptation-Level Phenomenon

The tendency of humans to judge various stimuli and situations relative to those they have previously experienced.

Relative Deprivation

The experience of feeling disadvantaged or less fortunate compared to others, often leading to dissatisfaction or resentment.

Military Branch

A division of a nation's armed forces responsible for a specific type of military operations, such as army, navy, or air force.

U.S. Air Corps

The aerial warfare service component of the United States Army prior to the creation of the United States Air Force.