An Independent,financing Type Project Has an IRR of 11

question 23

Multiple Choice

An independent,financing type project has an IRR of 11.4 percent and a required rate of return of 10.6 percent.Given this,you know the

• A)initial cash flow is negative.
• B)net present value is positive.
• C)cash flows are conventional.
• D)accept/reject decision cannot be based on the IRR.
• E)project should be rejected.

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Definitions:

Longshore Current

A current, generally in an ocean or large lake, flowing more or less parallel to a coastline.

Prevailing Wind

The most common or frequent wind direction in a particular place, influenced by global patterns or local topography.

Shoreline Sand

Sand found along the edge of a sea, lake, or river, commonly composed of finely divided rocks and mineral particles.

Low Tide

The state of the tide when it is at its lowest level, resulting in the minimal reach of seawater on the shore.