A Project Has Normal Cash Flows

question 83

Multiple Choice

A project has normal cash flows. Its IRR is 15 percent and its cost of capital is 10 percent. 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 percent but greater than 10 percent.
• C) The project's discounted payback is less than the project's payback.
• D) The project's NPV > 0.

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Definitions:

Glycolysis

The metabolic pathway that converts glucose into pyruvate, generating energy in the form of ATP and NADH, occurring in the cytoplasm of the cell.

Chemiosmosis

The movement of ions across a semipermeable membrane, down their electrochemical gradient, which is used to generate ATP in cellular respiration and photosynthesis.

Aerobic Bacteria

Bacteria that require oxygen for their growth and survival, using it to produce energy through cellular respiration.

ATP Production

The process by which cells generate adenosine triphosphate, a molecule that stores and transports chemical energy within cells.