Which of the Following Statements Is Correct

question 78

Multiple Choice

Which of the following statements is correct?

• A)The discounted payback is generally shorter than the regular payback.
• B)Any type of project might have multiple rates of return if the IRR is sufficiently high.
• C)The NPV and IRR methods can lead to conflicting and accept/reject decisions only if (1) mutually exclusive projects are being evaluated and (2) if the projects' NPV profiles cross at a rate less than the firm's cost of capital.
• D)The NPV and IRR methods can lead to conflicting accept/reject decisions only if (1) mutually exclusive projects are being evaluated and (2) if the projects' NPV profiles cross at a rate greater than the firm's cost of capital.
• E)None of the above is a correct statement.

---

Definitions:

Monthly Sales

The total revenue or units sold by a business in one calendar month.

Bonus Plan

An incentive scheme that rewards employees with extra payments in addition to their regular salary based on performance.

Significantly Increased

A statistical term describing when an observed value or statistic shows a substantial and unlikely to occur by chance increase from a baseline or reference value.

Population of Differences

A hypothetical or actual collection of differences derived from comparing two sets or populations in a statistical study.