Which of the Following Statements Is FALSE

question 60

Multiple Choice

Which of the following statements is FALSE?

• A)It is possible that an IRR does not exist for an investment opportunity.
• B)If the payback period is less than a pre-specified length of time,you accept the project.
• C)The internal rate of return (IRR)investment rule is based upon the notion that if the return on other alternatives is greater than the return on the investment opportunity,you should undertake the investment opportunity.
• D)It is possible that there is no discount rate that will set the NPV equal to zero.

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Definitions:

Marketing Plan

A comprehensive document that outlines a company's overall marketing efforts, including strategies, objectives, and activities to achieve them.

Corporate Mission Statement

A concise declaration of a company’s core purpose and focus that normally remains unchanged over time, guiding its strategic decisions and organizational culture.

Financial and Profit Model

A theoretical construct that represents the economic operations of a business, detailing how revenue is generated, costs are incurred, and profits are made.

Situation Assessment

The process of evaluating the current state of an environment or situation to inform decision-making and strategy formulation.