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Which one of these is correct? If a project has “Normal “cash flows, then its IR

ID: 2671024 • Letter: W

Question

Which one of these is correct?

If a project has “Normal “cash flows, then its IRR must be positive.

If a project has “normal” cash flows, then its MIRR must be positive.

If a project has “Normal” cash flows, then it will have exactly two real IRRs.

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 IRR.

“normanl” 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.

Explanation / Answer

If a project has

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