A Project Has a Series of Non-Normal Cash Flows That

question 65

Multiple Choice

A project has a series of non-normal cash flows that result in a terminal value (TV) of $25,000 in 10 years.If the project's initial costs are $7,500,what is your recommendation regarding this project to management (accept/reject) ?

• A)accept as the MIRR is 12.79%
• B)reject as the MIRR is greater than zero
• C)accept as the terminal value is greater than the present value of the costs
• D)accept as the MIRR is 12.50%

---

Definitions:

Vas Deferens

A long, muscular tube that transports mature sperm from the testes to the urethra in preparation for ejaculation.

Bulbourethral Gland

A gland in males that secretes a fluid into the urethra to lubricate and neutralize acidity before ejaculation.

Reverse Transcriptase

An enzyme used by some viruses to synthesize DNA from RNA, playing a key role in the replication cycle of retroviruses.

Viral RNA

The genetic material of certain viruses, composed of ribonucleic acid (RNA), which enables them to replicate and infect host cells.