Given a Particular Set of Project Cash Flows, Which One

question 58

Multiple Choice

Given a particular set of project cash flows, which one of the following statements must be correct?

• A) There can be only one NPV for the project, even with multiple discount rates.
• B) There can be only one IRR for the project.
• C) There can be more than one IRR for the project.
• D)There can be only one profitability index for the project, even with multiple discount rates.

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Definitions:

Complexity

The state or quality of being intricate or complicated, often referring to systems, problems, or organizations.

Company-Related Competencies

The unique capabilities and resources that a company possesses, which give it a competitive edge in the market.

Cultural Intelligence

The capability to relate and work effectively across cultures.

Functional Excellence

The ability to collaborate with different units and functions within the company.