Which of These Statements About Valuation Models Is NOT Correct

question 97

Multiple Choice

Which of these statements about valuation models is NOT correct?

• A)NPV employs a weighted average cost of capital discount rate that reflects potential reinvestment.
• B)IRR and NPV calculations typically make the same investment recommendations only when the projects are independent of each other.
• C)If cash flows are not normal,IRR may arrive at multiple solutions.
• D)IRR is a more robust determinant of project viability than NPV.

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