Which of the Following Statements Is CORRECT?Assume That All Projects

question 26

Multiple Choice

Which of the following statements is CORRECT?Assume that all projects being considered have normal cash flows and are equally risky.

• A) if a project's irr is equal to its cost of capital, then under all reasonable conditions, the project's irr must be negative.
• B) if a project's irr is equal to its cost of capital, then under all reasonable conditions the project's npv must be zero.
• C) there is no necessary relationship between a project's irr, its cost of capital, and its npv.
• D) when evaluating mutually exclusive projects, those projects with relatively long lives will tend to have relatively high npvs when the cost of capital is relatively high.
• E) if a project's irr is equal to its cost of capital, then, under all reasonable conditions, the project's npv must be negative.

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Definitions:

Anxiety Disorder

A mental health disorder characterized by excessive fear, worry, or unease that is difficult to control and affects daily functioning.

Reduce Worry

Strategies or approaches aimed at diminishing feelings of concern or anxiety about potential problems or threats.

Panic Disorder

A psychiatric disorder characterized by recurrent unexpected panic attacks and fear of future attacks, leading to significant distress or impairment in functioning.

Unpredictable Episodes

Sudden and unforeseen occurrences or events, often related to health conditions, that can significantly impact an individual's well-being or the state of a situation.