Which of the Following Statements Is CORRECT

question 100

Multiple Choice

Which of the following statements is CORRECT?

• A) If a project has "normal" cash flows, then its MIRR must be positive.
• B) If a project has "normal" cash flows, then it will have exactly two real IRRs.
• C) The definition of "normal" cash flows is that the cash flow stream has one or more negative cash flows followed by a stream of positive cash flows and then one negative cash flow at the end of the project's life.
• D) If a project has "normal" cash flows, then it can have only one real IRR, whereas a project with "nonnormal" cash flows might have more than one real IRR.
• E) If a project has "normal" cash flows, then its IRR must be positive.

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Definitions:

6-Ohm Resistor

An electronic component that opposes the flow of electrical current, with a resistance value of six ohms.

Series

Refers to an electrical circuit configuration in which components are connected end-to-end, such that the current flows through each component in sequence.

Amps

Short for Amperes, the unit of measure for electrical current, representing the flow of electric charge.

Electrical Current

The flow of electric charge carried by electrons moving through a conductor, measured in amperes.