Which of the Following Statements Is CORRECT

question 59

Multiple Choice

Which of the following statements is CORRECT?

• A) Projects with "normal" cash flows can have two or more real IRRs.
• B)Projects with "normal" cash flows must have two changes in the sign of the cash flows, e.g., from negative to positive to negative.If there are more than two sign changes, then the cash flow stream is "nonnormal."
• C) The "multiple IRR problem" can arise if a project's cash flows are "normal."
• D) Projects with "nonnormal" cash flows are almost never encountered in the real world.
• E) Projects with "normal" cash flows can have only one real IRR.

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Definitions:

Alimony

A financial support that one spouse is required to provide to the other during or after a divorce proceeding.

Financial Support

Monetary assistance given by one person or entity to another, often for specific purposes such as education, maintenance, or care.

Parties' Education

The process or act of providing the individuals or groups involved in a legal proceeding with the knowledge or information necessary to understand their rights, responsibilities, and the legal issues at hand.

Duration Of The Marriage

The period of time from the wedding date until the formal dissolution (such as divorce) of a marriage.