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Which of the Following Statements Is Correct

Question 66

Multiple Choice

Which of the following statements is correct?


A) One can find the "cross-over rate," or the discount rate at which two normal projects have the same NPV, by finding the IRR of the differences in the projects' yearly cash flows.
B) If you calculate a project's MIRR and find it to be the same as the regular IRR, you can be sure you made a mistake.
C) If a project's IRR is less than its required rate of return, then the discounted payback period will be less than the regular payback period.
D) If a project has a cash outflow at t = 0 followed by a single cash inflow at t = 10, then the MIRR will be less than the regular IRR.
E) If a project has a cash outflow at t = 0 followed by a single cash inflow at t = 10, then the MIRR will be greater than the regular IRR.

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