Which of the Following Statements Is CORRECT

question 76

Multiple Choice

Which of the following statements is CORRECT?

• A) One defect of the IRR method is that it does not take account of cash flows over a project's full life.
• B) One defect of the IRR method is that it does not take account of the time value of money.
• C) One defect of the IRR method is that it does not take account of the cost of capital.
• D) One defect of the IRR method is that it values a dollar received today the same as a dollar that will not be received until sometime in the future.
• E) One defect of the IRR method is that it assumes that the cash flows to be received from a project can be reinvested at the IRR itself,and that assumption is often not valid.

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Definitions:

Compensation Officer

A human resources professional responsible for managing an organization’s compensation programs, ensuring competitive and equitable pay practices.

Administrative

Pertaining to the organization, management, or execution of office tasks, policies, or procedures within a business or institution.

Developmental

Pertaining to growth, progress, or advancement in skills, knowledge, or capabilities.

Interpersonal Skills

Abilities that facilitate effective communication and interaction with others, such as empathy, active listening, and conflict resolution.