Which of the Following Statements Is FALSE

question 41

Multiple Choice

Which of the following statements is FALSE?

• A)Problems can arise using the IRR method when the mutually exclusive investments have different cash flow patterns.
• B)The IRR is affected by the scale of the investment opportunity.
• C)Multiple incremental IRRs might exist.
• D)The incremental IRR rule assumes that the riskiness of the two projects is the same.

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Definitions:

Natural Selection

A fundamental mechanism of evolution where organisms better adapted to their environment tend to survive and reproduce more than others.

Evolution

The process by which different kinds of living organisms are thought to have developed and diversified from earlier forms during the history of the earth, driven by natural selection, genetic drift, mutations, and gene flow.

Darwin

Refers to Charles Darwin, a British naturalist known for his contributions to the science of evolution and his proposal of natural selection as a mechanism for evolutionary change.

Neutral Variation

Neutral variation involves genetic differences among individuals that do not confer a selective advantage or disadvantage in terms of survival or reproduction.