Which of the Following Statements Is CORRECT

question 83

Multiple Choice

Which of the following statements is CORRECT?

• A) If Project A's IRR exceeds Project B's, then A must have the higher NPV.
• B) A project's MIRR can never exceed its IRR.
• C) If a project with normal cash flows has an IRR less than the WACC, the project must have a positive NPV.
• D) If the NPV is negative, the IRR must also be negative.
• E) If a project with normal cash flows has an IRR greater than the WACC, the project must also have a positive NPV.

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Definitions:

Market Failure

A scenario in which the distribution of goods and services through an unregulated market fails to achieve efficiency, typically resulting in a decrease in overall social welfare.

Economies

The system by which goods and services are produced, distributed, and consumed within a particular area or community.

Basic Types

Basic Types refer to fundamental categories or classifications used in various contexts, such as programming, economic goods, and more, depending on the specific field of study.

Externality

An economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume.