Which of the following statements is most correct?
A) If a project with normal cash flows has an IRR which exceeds the cost of capital, then the project must have a positive NPV.
B) If the IRR of Project A exceeds the IRR of Project B, then Project A must also have a higher NPV.
C) The modified internal rate of return (MIRR) can never exceed the IRR.
D) Answers a and c are correct.
E) None of the answers above is correct.

Question

Quizplus · Accepted Answer

If a project with normal cash flows has an IRR that exceeds the cost of capital, it indicates that the project's return is greater than the cost, resulting in a positive NPV.

Which of the Following Statements Is Most Correct