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:

Stroke

A medical condition that occurs when the blood supply to part of the brain is interrupted or reduced, preventing brain tissue from getting oxygen and nutrients.

Diencephalon

A division of the brain located between the cerebral hemispheres and brainstem, important for sensory and motor function and includes structures such as the thalamus and hypothalamus.

Frontal Lobe

The part of the cerebrum located at the front of the brain, associated with reasoning, planning, parts of speech, movement, emotions, and problem-solving.

Cerebral Cortex

The cerebral cortex is the outer layer of neural tissue of the cerebrum of the brain, playing a key role in memory, attention, perception, cognition, awareness, thought, language, and consciousness.