Given a Particular Set of Project Cash Flows,which One of the Following

question 16

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.
• 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 up to two profitability indexes for any project.

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Definitions:

Prepare Reports

The process of organizing and presenting financial data and analyses, typically for business decision-making.

Special Journals

Ledger books dedicated to recording specific types of transactions, such as cash receipts or disbursements, distinct from general accounting records for efficiency and accuracy.

Computerized Accounting Systems

Software programs that manage and process financial transactions and accounting tasks electronically, increasing accuracy and efficiency.

Automated Business Systems

Systems that use technology to perform and manage business processes automatically, enhancing efficiency and reducing manual intervention.