7. Which one of the following statements is correct in relation to independent projects?
(A) The internal rate of return cannot be used to determine the acceptability of a project that has
financing type cash flows.
(B) A project with investing type cash flows is acceptable if its internal rate of return exceeds the
required return.
(C) A project with financing type cash flows is acceptable if its internal rate of return exceeds the
required return.
(D) Projects with financing type cash flows are acceptable only when the internal rate of return is
negative.