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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