Which of the Following Statements Is FALSE

question 52

Multiple Choice

Which of the following statements is FALSE?

• A)The IRR investment rule states you should turn down any investment opportunity where the IRR is less than the opportunity cost of capital.
• B)The IRR investment rule states that you should take any investment opportunity where the IRR exceeds the opportunity cost of capital.
• C)Since the IRR rule is based upon the rate at which the NPV equals zero,like the NPV decision rule,the IRR decision rule will always identify the correct investment decisions.
• D)There are situations in which multiple IRRs exist.

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Definitions:

Clayton Act

A U.S. antitrust law enacted in 1914, aimed at preventing anticompetitive practices in their incipiency.

Tire-Repair Kits

A collection of tools and materials used for fixing punctures in vehicle tires.

Sale Conditions

Terms specified in a sales agreement that dictate the circumstances under which a sale takes place.

Clayton Act

A U.S. antitrust law aimed at preventing monopolies and promoting competition.