Which of the Following Statements Is CORRECT

question 99

Multiple Choice

Which of the following statements is CORRECT?

• A) One defect of the IRR method versus the NPV is that the IRR does not take account of cash flows over a project's full life.
• B) One defect of the IRR method versus the NPV is that the IRR does not take account of the time value of money.
• C) One defect of the IRR method versus the NPV is that the IRR does not take account of the cost of capital.
• D) One defect of the IRR method versus the NPV is that the IRR 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 versus the NPV is that the IRR does not take proper account of differences in the sizes of projects.

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Definitions:

Behaviorism

A psychological approach that studies observable and quantifiable aspects of behavior and the effects of the environment on those behaviors, excluding theories of mind.

Immediate Response

A swift reaction to a stimulus or situation without delay.

Learning

The process of acquiring new, or modifying existing, knowledge, behaviors, skills, values, or preferences.

Experiments

A method of research in which variables are manipulated and controlled to investigate their effect on other variables, often used to determine causality.