Question
Which of the following statements is CORRECT? A) For a project to have more than one IRR, then both IRRs must be greater than the
Which of the following statements is CORRECT? A) For a project to have more than one IRR, then both IRRs must be greater than the cost of capital. B) Multiple IRRs can occur only if a project has non-normal cash flow pattern, meaning the signs of the cash flows change more than once. C) If a project has normal cash flows and its IRR exceeds its cost of capital, then it's possible that the project's is negative. D) If a project has two IRRs, then the smaller one is the one that is most relevant, and it should be accepted and relied upon. E) If two projects are mutually exclusive, then they are likely to have multiple IRRs.
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