Which of the Following Statements Is Most Correct

question 10

Multiple Choice

Which of the following statements is most correct?

• A) When dealing with independent projects, discounted payback (using a payback requirement of 3 or less years), NPV, IRR, and modified IRR always lead to the same accept/reject decisions for a given project.
• B) When dealing with mutually exclusive projects, the NPV and modified IRR methods always rank projects the same, but those rankings can conflict with rankings produced by the discounted payback and the regular IRR methods.
• C) Multiple rates of return are possible with the regular IRR method but not with the modified IRR method, and this fact is one reason given by the textbook for favoring MIRR (or modified IRR) over IRR.
• D) Statements a, b, and c are false.
• E) Statements a and c are true.

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Definitions:

Left Hemisphere

The left side of the brain, typically associated with linguistic abilities, logical reasoning, and analytical tasks.

Strings of Digits

Sequences of numerical digits, which can be used in various contexts such as passwords, mathematical calculations, or data entry.

Left Hand

The non-dominant hand for the majority of people, controlled by the right hemisphere of the brain, often associated with tasks requiring spatial and nonverbal processes.

Percentage

A mathematical term expressing a number or ratio as a fraction of 100, used to compare proportions.