Which Statement About a Project's IRR Is Correct? Assume That

Multiple Choice

Which statement about a project's IRR is correct? Assume that all projects being considered have normal cash flows and are equally risky.

A) If a project's IRR is equal to its WACC, then, under all reasonable conditions, the project's NPV must be negative.
B) If a project's IRR is equal to its WACC, then, under all reasonable conditions, the project's IRR must be negative.
C) If a project's IRR is equal to its WACC, then, under all reasonable conditions, the project's NPV must be zero.
D) There is no necessary relationship between a project's IRR, its WACC, and its NPV.