Which of the following statements is (are) true?

(I) If an investment project has an internal rate of return (IRR) equal to the cost of capital, the net present value (NPV) for that project must be positive.

(II) If the cumulative cash flows, F_t , change signs more than once during the term of an investment, there may be more than one IRR.

• A.

  Both are true

• B.

  I only

• C.

  II only

• D.

  Neither are true