Which of the Following Statements Is Correct

question 34

Multiple Choice

Which of the following statements is correct?

• A)If a project with normal cash flows has an IRR greater than the WACC, the project must have a positive NPV.
• B)If Project A's IRR exceeds Project B's, then A must have the higher NPV.
• C)A project's MIRR can never exceed its IRR.
• D)If a project with normal cash flows has an IRR less than the WACC, the project must have a positive NPV.

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Definitions:

Fundamental Attribution Error

The tendency to attribute others' behavior to their character or disposition rather than to external factors.

Just-World Hypothesis

The belief that people get what they deserve and deserve what they get, which often underlies the assumption that the world is fair and justice is served.

Validity Effect

The tendency to believe that information is correct or valid simply because it has been repeated multiple times.

The Big Lie

A propaganda technique, often attributed to Adolf Hitler, based on the premise that a lie, if audacious enough and repeated enough times, will be believed by the masses.