Which of the Following Statements Is CORRECT

question 82

Multiple Choice

Which of the following statements is CORRECT?

• A) For a project to have more than one IRR,then both IRRs must be greater than the WACC.
• B) If two projects are mutually exclusive,then they are likely to have multiple IRRs.
• C) If a project is independent,then it cannot have multiple IRRs.
• D) Multiple IRRs can occur only if the signs of the cash flows change more than once.
• E) If a project has two IRRs,then the smaller one is the one that is most relevant,and it should be accepted and relied upon.

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