Which Statement Regarding Normal Cash Flows Is Correct

question 63

Multiple Choice

Which statement regarding normal cash flows is correct?

• A)If a project has normal cash flows, then its IRR must be positive.
• B)If a project has normal cash flows, then its MIRR must be positive.
• C)If a project has normal cash flows, then it will have exactly two real IRRs.
• D)If a project has normal cash flows, then it can have only one real IRR, whereas a project with non-normal cash flows might have more than one real IRR.

Explain the reasons nations engage in international trade.

Understand the role and functions of the World Trade Organization (WTO).

Discuss various trade policies and agreements, including GATT and the Trade Adjustment Assistance Act.

Understand the impact of labor migration on world output and economies of involved countries.

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Definitions:

DFL

Degree of Financial Leverage; a measure that shows how much a company's earnings per share (EPS) are affected by changes in its operating income, indicating the volatility of earnings.

Dividends Per Share

The amount of dividends paid to shareholders, divided by the number of outstanding shares of a company's stock.

Stock Price

The present rate at which a company's stock is bought and sold on the stock exchange.

Present Value

The present worth of a future amount of money or sequence of cash payments, calculated using a particular return rate.