Which One of the Following Statements Is Correct in Relation

question 70

Multiple Choice

Which one of the following statements is correct in relation to independent projects?

• A)The internal rate of return cannot be used to determine the acceptability of a project that has financing type cash flows.
• B)A project with investing type cash flows is acceptable if its internal rate of return exceeds the required return.
• C)A project with financing type cash flows is acceptable if its internal rate of return exceeds the required return.
• D)The net present value profile is upsloping for projects with both investing and financing type cash flows.
• E)Projects with financing type cash flows are acceptable only when the internal rate of return is negative.