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Question(s) / Instruction(s):

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), which always provides the higher return as compared to the Internal Rate of Return (IRR), should be used because of its optimistic view on the project\'s return.  .

d. Answers b and c are correct.

e. None of the answers above is correct.

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