Which Statement Regarding Normal Cash Flows Is Correct

question 47

Multiple Choice

Which statement regarding normal cash flows is correct?

• A)Projects with normal cash flows can have only one real IRR.
• B)Projects with normal cash flows can have two or more real IRRs.
• C)The "multiple IRR problem" can arise if a project's cash flows are normal.
• D)Projects with non-normal cash flows are almost never encountered in the real world.

---

Definitions:

Short/Long Arm

A suspension design where control arms of different lengths are used, affecting vehicle handling and stability.

Multilink

A type of suspension system in vehicles that features multiple links or arms for improved handling and comfort.

4WD

Four-wheel drive, a system that powers all four wheels of a vehicle simultaneously for better traction.

Linear Rate

In the context of springs, a linear rate refers to a constant rate of compression or extension, meaning the force required to compress or extend the spring is consistent throughout its movement.