Which of the following statements is CORRECT?Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows.
A) a project's regular irr is found by compounding the cash inflows at the cost of capital to find the present value (pv) , then discounting the tv to find the irr.
B) if a project's irr is smaller than the cost of capital, then its npv will be positive.
C) a project's irr is the discount rate that causes the pv of the inflows to equal the project's cost.
D) if a project's irr is positive, then its npv must also be positive.
E) a project's regular irr is found by compounding the initial cost at the cost of capital to find the terminal value (tv) , then discounting the tv at the cost of capital.
Correct Answer:
Verified
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