Which of the Following Statements Is False

question 2

Multiple Choice

Which of the following statements is false?

• A) The NPV will be positive if the IRR is less than the cost of capital.
• B) If the multiple IRR problem does not exist, any independent project acceptable by NPV method will also be acceptable by the IRR method.
• C) When IRR = k (the cost of capital), NPV = 0.
• D) The IRR can be positive even if the NPV is negative.
• E) The NPV method is not affected by the multiple IRR problem.

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Definitions:

Cognitive Development

The process by which a person's ability to think, understand, and interact with the world develops through childhood into adulthood.

Piaget

A Swiss psychologist known for his pioneering work in child development, particularly for his theory of cognitive development.

Blank Slate

A metaphorical term referring to the mind in its presumed original state unaffected by outside influences.

Accommodation

In cognitive psychology, the process of modifying existing mental frameworks to incorporate new information.