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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