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:

Bipolar Disorder

A mental health condition marked by extreme mood swings from high (mania or hypomania) to low (depression).

Mood Disturbance

Any disruption or imbalance in one's normal mood state, which can include conditions such as depression or bipolar disorder.

Efficacy

The ability to produce a desired or intended result; typically used in the context of the effectiveness of a treatment or intervention.

Effectiveness

The degree to which something achieves its desired outcome or goal under specific conditions.