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

question 99

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) If Project A has a higher IRR than Project B, then Project A must also have a higher NPV.
• B) The IRR calculation implicitly assumes that all cash flows are reinvested at the WACC.
• C) The IRR calculation implicitly assumes that cash flows are withdrawn from the business rather than being reinvested in the business.
• D) If a project has normal cash flows and its IRR exceeds its WACC, then the project's NPV must be positive.
• E) If Project A has a higher IRR than Project B, then Project A must have the lower NPV.

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Definitions:

Caregiver Relationships

The dynamics and interpersonal interactions between an individual who provides care and the recipient of care, often involving emotional, physical, and social support.

Defense Mechanism

Psychological strategies employed unconsciously to protect oneself from anxiety or unacceptable thoughts and feelings.

Splitting

A defense mechanism in psychoanalysis where an individual views others or themselves as all good or all bad, lacking nuance.

Psychoanalytic Approaches

Therapy modalities based on Freudian concepts that explore unconscious motivations and early childhood experiences affecting current behaviors.