Which of the Following Statements Is CORRECT

question 27

Multiple Choice

Which of the following statements is CORRECT?

• A) The NPV,IRR,MIRR,and discounted payback (using a payback requirement of 3 years or less)methods always lead to the same accept/reject decisions for independent projects.
• B) For mutually exclusive projects with normal cash flows,the NPV and MIRR methods can never conflict,but their results could conflict with the discounted payback and the regular IRR methods.
• C) Multiple IRRs can exist,but not multiple MIRRs.This is one reason some people favor the MIRR over the regular IRR.
• D) If a firm uses the discounted payback method with a required payback of 4 years,then it will accept more projects than if it used a regular payback of 4 years.
• E) The percentage difference between the MIRR and the IRR is equal to the project's WACC.

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Definitions:

Warehouse Layout

The arrangement of a warehouse and its storage facilities to optimize the storage and handling of goods, efficiency, and safety.

Low-cost Storage

Storage solutions designed to minimize costs associated with holding inventory, typically achieved through efficient use of space or strategic location selection.

Product-oriented Layout

A production facility configuration where equipment and workstations are organized around the product being manufactured.

Equipment Utilization

The measure of how effectively a piece of equipment is being used compared to its full potential capacity.