Question
Which of the following statements is CORRECT? a. If a project has normal cash flows, then its MIRR must be positive. b. If a project
Which of the following statements is CORRECT?
| a. |
| If a project has "normal" cash flows, then its MIRR must be positive. |
| b. |
| If a project has "normal" cash flows, then it will have exactly two real IRRs. |
| c. |
| The definition of "normal" cash flows is that the cash flow stream has one or more negative cash flows followed by a stream of positive cash flows and then one negative cash flow at the end of the project's life. |
| d. |
| If a project has "normal" cash flows, then it can have only one real IRR, whereas a project with "nonnormal" cash flows might have more than one real IRR. |
| e. |
| If a project has "normal" cash flows, then its IRR must be positive. |
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