Which of the Following Statements Is (Are)true

question 43

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) If the cumulative cash flows,∑ F_t,change signs more than once during the term of an investment,there may be more than one IRR.

• A)Both are true
• B)I only
• C)II only
• D)Neither are true

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Definitions:

Summarization

The act of condensing information into a shorter form while retaining the essential points.

Continuous Eye Contact

Maintaining unbroken visual engagement with another person's eyes, often signifying attention, confidence, or social connection.

Timeframe

A specific period during which certain activities or events occur or are planned to take place.

Interpersonal Communication

The process of exchange of information, feelings, and meaning between two or more people through verbal and/or non-verbal methods.