Which of the Following Statements Is Incorrect

question 17

Multiple Choice

Which of the following statements is incorrect?

• A) Assuming a project has normal cash flows, the NPV will be positive if the IRR is less than the cost of capital.
• B) If the multiple IRR problem does not exist, any independent project acceptable by the NPV method will also be acceptable by the IRR method.
• C) If IRR = r (the cost of capital), then NPV = 0.
• D) NPV can be negative if the IRR is positive.
• E) The NPV method is not affected by the multiple IRR problem.

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Federal Circuit Courts of Appeal

The Federal Circuit Courts of Appeal are intermediate appellate courts in the United States responsible for reviewing decisions from federal district courts within their geographic circuit.

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Case or Controversy

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