A Project Has Normal Cash Flows

question 103

Multiple Choice

A project has normal cash flows. Its IRR is 15% and its cost of capital is 10%. Which of the following statements is incorrect?

• A) The project has only one negative cash flow.
• B) The project's MIRR is less than 15% but greater than 10%.
• C) The project's discounted payback is less than the project's payback.
• D) The project's NPV > 0.

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Definitions:

Signaling Scent

Odors or fragrances emitted by organisms or substances, used to communicate or indicate presence.

Social Functions

The roles or responsibilities of an entity or individual within a society that contribute to its operation and stability.

Olfaction

The sense of smell, a process by which the olfactory system detects and identifies odors.

Species Identification

The process of determining the exact species of an organism based on physical characteristics, genetic analysis, or other scientific methods.