Which of the Following Statements Is CORRECT

question 19

Multiple Choice

Which of the following statements is CORRECT?

• A) If a project has "normal" cash flows, then its MIRR must be positive.
• B) If a project has "normal" cash flows, then it will have exactly two real IRRs.
• C) 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.
• D) 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.
• E) If a project has "normal" cash flows, then its IRR must be positive.

---

Definitions:

Password

A secret word or phrase used to authenticate or gain access to a resource.

Budget

A plan for managing income and expenditure over a specific period.

Substantial Income

A significant amount of money earned, usually enough to support a high standard of living or fulfill financial goals.

Compounded Semiannually

The process of calculating interest on both the initial principal and the accumulated interest from previous periods twice a year.