A project has normal cash flows. Its IRR is 15% and its cost of capital is 10%. Which of the following statements is incorrect?
A) The project has only one negative cash flow.
B) The project's MIRR is less than 15% but greater than 10%.
C) The project's discounted payback is less than the project's payback.
D) The project's NPV 0.

Question

A project has normal cash flows. Its IRR is 15% and its cost of capital is 10%. Which of the following statements is incorrect?
A) The project has only one negative cash flow.
B) The project's MIRR is less than 15% but greater than 10%.
C) The project's discounted payback is less than the project's payback.
D) The project's NPV > 0.

Quizplus · Accepted Answer

The Answer of A project has normal cash flows. Its IRR is 15% and its cost of capital is 10%. Which of the following statements is incorrect?
A) The project has only one negative cash flow.
B) The project's MIRR is less than 15% but greater than 10%.
C) The project's discounted payback is less than the project's payback.
D) The project's NPV > 0.

A Project Has Normal Cash Flows