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

question 17

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) A project's MIRR is always less than its regular IRR.
• B) If a project's IRR is greater than its WACC, then the MIRR will be less than the IRR.
• C) If a project's IRR is greater than its WACC, then the MIRR will be greater than the IRR.
• D) To find a project's MIRR, we compound cash inflows at the IRR and then discount the terminal value back to t = 0 at the WACC.
• E) A project's MIRR is always greater than its regular IRR.

---

Definitions:

American Sign Language

A complete, natural language that employs signs made by moving the hands combined with facial expressions and postures of the body to communicate.

Neandertals

A distinct group within the genus Homo inhabiting Europe and Southwest Asia from approximately 30,000 to 125,000 years ago.

Gestural Language

A form of non-verbal communication which uses bodily movements, especially of the hands and arms, to convey messages or symbols.

Vocal Tract

The anatomical structures of the throat and mouth that produce sound in speech and singing.