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:

Lateral Line

A system of sense organs found in aquatic vertebrates, used to detect movements and vibrations in the surrounding water.

Semicircular Canals

Three fluid-filled tubes in the inner ear that are crucial for maintaining balance and sensing motion.

Cochleae

The spiral-shaped, auditory portion of the inner ear responsible for transforming sound into nerve impulses that are sent to the brain.

Ampullae

Bulb-shaped structures, often found in the anatomy of various animals, serving functions such as balance in fish or storage in plants.