Which of the Statements Below Is TRUE

question 95

Multiple Choice

Which of the statements below is TRUE?

• A) A problem with IRR as a decision rule is that if the cash flow is not standard, there is a possibility of multiple IRRs for a single project.
• B) When we talk about standard cash flow for a project, we assume an initial cash outflow at the beginning of the project and negative cash flows in the future.
• C) When we apply IRR to standard cash flow, we have the potential for more than one IRR solution.
• D) For every period that the cash flow has a change of sign (negative to positive or positive to negative), the NPV profile could cross the y-axis, generating a MIRR.

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