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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