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Suppose that you are looking at a project that has normal cash flows (negative at the beginning and then all positives). Which of the following is true? Multiple Choice If the NPV of the project is positive, the IRR must be lower than the required return of the project. If the NPV of the project is positive, the IRR must equal zero. You may have multiple IRR's. If the NPV of the project is positive, the IRR must be higher than the required return of the project.

Suppose that you are looking at a project that has normal cash flows (negative at the beginning and then all positives). Which of the following is true? Multiple Choice If the NPV of the project is positive, the IRR must be lower than the required return of the project. If the NPV of the project is positive, the IRR must equal zero. You may have multiple IRR's. If the NPV of the project is positive, the IRR must be higher than the required return of the project.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Suppose that you are looking at a project that has normal cash flows (negative at the beginning and then all positives). Which of the following is true? Multiple Choice If the NPV of the project is positive, the IRR must be lower than the required return of the project. If the NPV of the project is positive, the IRR must equal zero. You may have multiple IRR's. If the NPV of the project is positive, the IRR must be higher than the required return of the project.
Transcribed Image Text:Suppose that you are looking at a project that has normal cash flows (negative at the beginning and then all positives). Which of the following is true? Multiple Choice If the NPV of the project is positive, the IRR must be lower than the required return of the project. If the NPV of the project is positive, the IRR must equal zero. You may have multiple IRR's. If the NPV of the project is positive, the IRR must be higher than the required return of the project.
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