Which of the Following Statements Is CORRECT

question 80

Multiple Choice

Which of the following statements is CORRECT?

• A) if project a's irr exceeds project b's, then a must have the higher npv.
• B) a project's mirr can never exceed its irr.
• C) if a project with normal cash flows has an irr less than the cost of capital, the project must have a positive npv.
• D) if the npv is negative, the irr must also be negative.
• E) if a project with normal cash flows has an irr greater than the cost of capital, the project must also have a positive npv.

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Definitions:

Bearing Fewer Children

The trend or individual choice of having a reduced number of offspring compared to previous generations.

General Partner

A partner who has unlimited liability.

Limited Partner

The partner’s liability is limited to the amount of investment in the partnership.

Mutual Partner

Relates to a type of partnership where all partners share equally in the responsibilities, profits, and losses of the business.