Which of the Following Statements Is CORRECT

question 53

Multiple Choice

Which of the following statements is CORRECT?

• A)For a project to have more than one IRR, then both IRRs must be greater than the WACC.
• B)If two projects are mutually exclusive, then they are likely to have multiple IRRs.
• C)If a project is independent, then it cannot have multiple IRRs.
• D)Multiple IRRs can only occur if the signs of the cash flows change more than once.
• E)If a project has two IRRs, then the smaller one is the one that is most relevant, and it should be accepted and relied upon.

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Definitions:

Null Hypothesis

A default hypothesis that there is no effect or no difference, and any observed differences in the data are due to chance.

Statistical Test

is a mathematical procedure applied to data in order to determine the significance of relationships or differences among variables.

Sample Size

Refers to the number of observations or units included in a study, affecting the study's power and generalizability.

Target Population

The specific group of individuals to whom a particular research study, policy, or intervention is directed.