A) If a project has “normal” cash flows, then its IRR must be positive. B) If a
ID: 2663792 • Letter: A
Question
A) If a project has “normal” cash flows, then its IRR must be positive.B) If a project has “normal” cash flows, then its MIRR must be positive.
C) If a project has “normal” cash flows, then it will have exactly two real IRRs.
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) 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.
Explanation / Answer
D. If a project has