Which One of the Following Statements Is Correct

question 82

Multiple Choice

Which one of the following statements is correct?

• A)The internal rate of return is the most reliable method of analysis for any type of investment decision.
• B)The payback method is biased toward short-term projects.
• C)The modified internal rate of return is most useful when projects are mutually exclusive.
• D)The average accounting return is the most difficult method of analysis to compute.
• E)The net present value method is applicable only if a project has conventional cash flows.

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Definitions:

Alcoholic Fermentation

A biochemical process by which yeasts transform sugars into ethanol and carbon dioxide, important in brewing, winemaking, and baking.

Lactate Fermentation

A metabolic process by which glucose or other sugars are converted into cellular energy and the metabolite lactate, often occurring in muscle cells under anaerobic conditions.

Hibernating Turtles

Turtles that enter into a state of reduced metabolic activity during cold months to conserve energy.

Oxygen Gas

A diatomic molecule (O2) essential for aerobic respiration in living organisms.