Which of the Following Statements Is CORRECT? Assume That the Project

question 42

Multiple Choice

Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows,with one outflow followed by a series of inflows.

• A) If Project A has a higher IRR than Project B,then Project A must have the lower NPV.
• B) If Project A has a higher IRR than Project B,then Project A must also have a higher NPV.
• C) The IRR calculation implicitly assumes that all cash flows are reinvested at the WACC.
• D) The IRR calculation implicitly assumes that cash flows are withdrawn from the business rather than being reinvested in the business.
• E) If a project has normal cash flows and its IRR exceeds its WACC,then the project's NPV must be positive.

---

Definitions:

Qualifications

Refers to the credentials, capabilities, or qualities that make someone suitable for a particular role or task.

Self-Presentation

The process by which individuals attempt to control the impressions others form of them in social or professional settings.

Active Approaches

Strategies or methods that involve direct engagement and proactive efforts in problem-solving or conflict resolution.

Involvement

The degree of personal commitment, engagement, or participation an individual has in a particular activity, organization, or cause.