Which of the Following Statements Is CORRECT

question 52

Multiple Choice

Which of the following statements is CORRECT?

• A) if a project has "normal" cash flows, then its mirr must be positive.
• B) if a project has "normal" cash flows, then it will have exactly two real irrs.
• C) the definition of "normal" cash flows is that the cash flow stream has one or more negative cash flows followed by a stream of positive cash flows and then one negative cash flow at the end of the project's life.
• D) if a project has "normal" cash flows, then it can have only one real irr, whereas a project with "nonnormal" cash flows might have more than one real irr.
• E) if a project has "normal" cash flows, then its irr must be positive.

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Definitions:

Distributive Negotiations

A negotiation method where parties compete to distribute a fixed amount of resources, often resulting in a win-lose outcome.

Cross-Cultural Negotiations

Involves negotiation processes between parties from different cultural backgrounds, requiring awareness and adaptation to cultural differences.

Traditional Assumptions

are longstanding beliefs or notions that are often accepted without question or evidence.

Generalizations

Generalizations are broad statements or concepts that apply to multiple instances, often used to simplify complex information or patterns.