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:

EOQ

Economic Order Quantity, the ideal order quantity a company should purchase to minimize its inventory costs, including holding and ordering costs.

Fixed Ordering Costs

The consistent costs associated with placing an order for goods or services, regardless of the order size.

Carrying Cost

Carrying cost represents the total cost of holding inventory, including storage costs, insurance, depreciation, and opportunity costs among others.

Canada Manu.

Reference to manufacturing activities or industries located in Canada, often involving the production of goods using Canadian resources.