Which of the Following Statements Is CORRECT

question 32

Multiple Choice

Which of the following statements is CORRECT?

• A) to find the mirr, we first compound cash flows at the regular irr to find the tv, and then we discount the tv at the cost of capital to find the pv.
• B) the npv and irr methods both assume that cash flows can be reinvested at the cost of capital. however, the mirr method assumes reinvestment at the mirr itself.
• C) if two projects have the same cost, and if their npv profiles cross in the upper right quadrant, then the project with the higher irr probably has more of its cash flows coming in the later years.
• D) if two projects have the same cost, and if their npv profiles cross in the upper right quadrant, then the project with the lower irr probably has more of its cash flows coming in the later years.
• E) for a project with normal cash flows, any change in the cost of capital will change both the npv and the irr.

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Definitions:

Sand

A granular material composed of finely divided rock and mineral particles, typically found on beaches, deserts, and riverbeds.

Sieve Elements

Specialized cells found in the phloem of vascular plants, involved in the transport of sugars and other nutrients from leaves to other parts of the plant.

Companion Cells

Specialized cells found in the phloem of plants that support the function of sieve tube elements.

Translocation

The process by which substances are transported inside a plant or the movement of chromosomes or segments of chromosomes to new positions during cell division.