Which of the following statements is CORRECT?
A. If Project A's IRR exceeds Project B's, then A must have the higher NPV.
B. A project's MIRR can never exceed its IRR.
C. If a project with normal cash flows has an IRR less than the cost of capital, the project must have a positive NPV.
D. If the NPV is negative, the IRR must also be negative.
E. If a project with normal cash flows has an IRR greater than the cost of capital, the project must also have a positive NPV.
Ans: E. If a project with normal cash flows has an IRR greater than the cost of capital, the project must also have a positive NPV.
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If a manager knows one of her subordinates has low self-esteem and wishes to enhance it, she should
A. provide frequent reminders about improving weaknesses. B. avoid delegating work to this subordinate. C. redesign the work so that it is routine and structured. D. avoid giving feedback. E. express confidence in the employee's abilities to complete given tasks.
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Indicate whether the statement is true or false
Which of the following is true regarding the debt to equity ratio?
a. The debt to equity ratio is a stringent measure of liquidity. b. The debt to equity ratio measures the productivity and desirability of the equity investment. c. The debt to equity ratio measures management's ability to productively employ all its resources. d. The debt to equity ratio measures the capital structure of the entity.
Bonds are issued at greater than par value when
a. the bonds are risk free. b. the market interest rate is less than the stated interest rate on the bond. c. the market rate of interest is declining. d. the market interest rate is greater than the stated interest rate on the bond. e. the market interest rate equals the stated interest rate on the bond.