Which of the Following Statements Is (Are)true

question 19

Multiple Choice

Which of the following statements is (are) true?
(I) If an investment project has an internal rate of return (IRR) equal to the cost of capital,the net present value (NPV) for that project must be positive
(II) The NPV method implicitly assumes that all cash flows received can be reinvested at the cost of capital
(III) An initial investment of $100,000 is made,and the expected cash flows from this investment are $25,000 at the end of each of years one to six inclusive.The IRR on this investment (Rounded to the nearest ½%) is 13%.

• A)I only
• B)II only
• C)III only
• D)None are true

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Definitions:

Psychological Traits

Refer to enduring patterns of thought, feeling, and behavior that are characteristic of an individual.

Origins

The point or place where something begins, arises, or is derived.

Nature

The inherent characteristics and genetic makeup of an organism, often contrasted with nurture, which involves environmental factors.

Nurture

The influence of external factors like environment, upbringing, and education on an individual's development.