The correct answer is A. positive.
Modified rate of return (MRR) and modified internal rate of return (MIRR) are both methods of capital budgeting that take into account the time value of money. MRR is calculated by taking the net present value (NPV) of a project and dividing it by the initial investment. MIRR is calculated by finding the discount rate that makes the NPV of a project equal to zero.
Both MRR and MIRR can exceed the cost of capital if the NPV of a project is positive. This means that the project is expected to generate a return that is greater than the cost of borrowing money.
Option B is incorrect because a negative NPV means that the project is expected to lose money. Option C is incorrect because a zero NPV means that the project is expected to break even. Option D is incorrect because a project with an NPV of one is expected to generate a return that is equal to the cost of capital.