Which of the Following Is Incorrect Regarding the IRR Statistic

question 25

Multiple Choice

Which of the following is incorrect regarding the IRR statistic?

• A) For independent projects, IRR will give the same accept/reject decision as NPV.
• B) For the IRR statistic to give a different accept/reject decision from NPV, the cash flows must be non-normal and the projects must be mutually exclusive.
• C) To solve for the IRR, one can simply solve the NPV formula for the rate that will make the NPV equal to zero.
• D) None of the statements are incorrect.

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Definitions:

Factor Weighting Technique

A method used in decision-making that assigns different weights to various factors or criteria according to their importance or relevance.

Supplier Selection

The process of evaluating and choosing suppliers based on criteria such as price, quality, reliability, and service to ensure the best value for the purchasing organization.

Supplier Criteria

Supplier criteria are the set standards or requirements that a company uses to evaluate and select suppliers, including quality, reliability, cost, and delivery performance.

Composite Score

An aggregate score that combines several individual metrics or scores into a single overall measurement, often used in assessments or evaluations.