Which of the Following Statements Is FALSE

question 80

Multiple Choice

Which of the following statements is FALSE?

• A)In general,the IRR rule works for a stand-alone project if all of the project's positive cash flows precede its negative cash flows.
• B)There is no easy fix for the IRR rule when there are multiple IRRs.
• C)The payback rule is primarily used because of its simplicity.
• D)No investment rule that ignores the set of alternative investment opportunities can be optimal.

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Definitions:

Fishery Collapse

A dramatic decline in fish populations in a given area, often due to overfishing, pollution, or habitat destruction, leading to a loss of the fishery as a viable resource.

Harvesting Rates

describe the speed or volume at which natural resources are gathered or extracted, impacting sustainability and future availability.

Total Allowable Catch (TAC)

The overall limit set by a government or a fisheries commission on the total number of fish or tonnage of fish that fishers collectively can harvest during some particular time period. Used to set the fishing limits for individual transferable quotas (ITQs).

Tonnage

A measurement of weight or volume used to describe the size or capacity of ships and the cargo they carry.