Which of the following statements is most correct?
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A. B. C. D. E.E
The IRR on a project is its expected rate of return. If the return exceeds the cost of the funds used to finance the project, a surplus remains after paying for the capital, and this surplus accrues to the firm's stockholders. Therefore, a project whose IRR exceeds its cost of capital increase shareholders' wealth, just as a positive NPV does.