Which of the Following Statements Is CORRECT

question 33

Multiple Choice

Which of the following statements is CORRECT?

• A) If a project with normal cash flows has an IRR greater than the WACC,the project must also have a positive NPV.
• B) If Project A's IRR exceeds Project B's,then A must have the higher NPV.
• C) A project's MIRR can never exceed its IRR.
• D) If a project with normal cash flows has an IRR less than the WACC,the project must have a positive NPV.
• E) If the NPV is negative,the IRR must also be negative.

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Definitions:

Self-Efficacy

Sense of one’s capability to master challenges and achieve goals.

SAT

A standardized test widely used for college admissions in the United States.

Study Harder

The act of increasing effort and time spent on academic work to achieve better understanding or improve performance.

Negative Impact

An adverse effect or harm that occurs as a result of an event, action, or decision.