Which of the Following Statements Is CORRECT? Assume That All

question 97

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.

---

Definitions:

Economic Self-Sufficiency

The state of having sufficient financial resources to meet one's needs without being dependent on others for income.

In-Service Training

Professional development and education for employees conducted during their tenure with an organization to enhance skills.

Child Care Center

A facility where children receive supervision and care, often engaging in play and educational activities while their parents are at work.

News Media

The various platforms and channels through which news and information are communicated to the public, including print, broadcast, and digital forms.