Question 2 (1 point)

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.

Question 2 options:

	If Project A has a higher IRR than Project B, then Project A must have the lower NPV.
	The IRR calculation implicitly assumes that all cash flows are reinvested at the WACC.
	If Project A has a higher IRR than Project B, then Project A must also have a higher NPV.
	If a project has normal cash flows and its IRR exceeds its WACC, then the projects NPV must be positive.