Which of the following statements is CORRECT?
A) if two projects are mutually exclusive, then they are likely to have multiple irrs.
B) if a project is independent, then it cannot have multiple irrs.
C) multiple irrs can occur only if the signs of the cash flows change more than once.
D) if a project has two irrs, then the smaller one is the one that is most relevant, and it should be accepted and relied upon.
E) for a project to have more than one irr, then both irrs must be greater than the cost of capital.
Correct Answer:
Verified
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