Which of the Following Statements Is CORRECT

question 52

Multiple Choice

Which of the following statements is CORRECT?

• A) The NPV, IRR, MIRR, and discounted payback (using a payback requirement of 3 years or less) methods always lead to the same accept/reject decisions for independent projects.
• B) For mutually exclusive projects with normal cash flows, the NPV and MIRR methods can never conflict, but their results could conflict with the discounted payback and the regular IRR methods.
• C)Multiple IRRs can exist, but not multiple MIRRs. This is one reason some people favor the MIRR over the regular IRR.
• D) If a firm uses the discounted payback method with a required payback of 4 years, then it will accept more projects than if it used a regular payback of 4 years.
• E) The percentage difference between the MIRR and the IRR is equal to the project's WACC.

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Definitions:

Mild Pain

A low level of discomfort or pain that is easily manageable and does not significantly impair daily activities.

Apical Pulse

The heartbeat as felt at the apex of the heart, typically located on the left chest, providing information on heart rate and rhythm.

Palpate

The technique of examining parts of the body by touch, especially for medical purposes such as feeling organs, lymph nodes, or detecting abnormalities.

Intercostal Spaces

The anatomical spaces between the ribs that contain muscles and nerves.