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5. (4 points) Which of the following statements is CORRECT? If a project has "normal"...

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5. (4 points) Which of the following statements is CORRECT? If a project has "normal" cash flows, then its MIRR must be positive. Ifa project has "normal" cash flows, then it will have exactly two real IRRs. The definition of "normal" cash flows is that the cash flow stream has one or more negative cash flows followed by a stream of positive cash flows and then one negative cash flow at the end of the project's life. a. b. c. d. If a project has "normal" cash flows, then it can have only one real IRR, whereas a project with "nonnormal" cash flows might have more than one real IRR. If a project has "normal" cash flows, then its IRR must be positive. e. 6. (30 points) Harry's Inc, is considering a project that has the following cash flow and WACC data. What are the project's NPV and IRR? Is it should be rejected or not? If you reject the project, explain why you reject it. WACC: 10.35% Year Cash flows$2,000 $600 S600 S500 $500 $400 a. What are the project's NPV and IRR? b. Is it should be rejected or not? If you reject the project, explain why you reject it

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