Which of the Following Statements Is True

question 7

Multiple Choice

Which of the following statements is true?

• A) Additivity of IRRs is always possible.
• B) Additivity is never possible for NPVs or IRRs.
• C) NPVs are additive.
• D) Additivity of NPVs is always possible.

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Definitions:

McCarthy's Rantings

Refers to the careless and aggressive accusations made by Senator Joseph McCarthy during the 1950s, particularly against alleged communists in the U.S.

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for employment, used as an indicator of the health of an economy.

G.I. Bill

Enacted in 1944, a law that provided various benefits to returning World War II veterans, including educational grants and loan guaranties for homes.

FHA Loans

Mortgages insured by the Federal Housing Administration, designed to help borrowers obtain homes by lowering some of the costs of their mortgage loans.