Assume a Project Is Independent with Financing Cash Flows

question 88

Multiple Choice

Assume a project is independent with financing cash flows. Which one of these statements is correct? 

• A) The IRR cannot be used to determine the acceptability of the project. 
• B) The project is acceptable if the required return exceeds the IRR. 
• C) The project is acceptable only if the NPV is zero or negative. 
• D) The project's required rate of return will always be negative. 
• E) The project is acceptable if the internal rate of return is negative. 

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