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.

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Definitions:

Peripheral Nervous

Part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord.

Emotion

A complex psychological state that involves an experiential, physiological, and behavioral response to a stimulus.

Reflexive Responses

Automatic reactions to certain stimuli that do not involve conscious thought.

Limbic System

Group of structures deep in the brain that function in emotion.