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:

Hereditary Studies

Research into how characteristics and conditions are transmitted from parents to offspring through genes.

Genetic Engineering

The manipulation of an organism's genes using biotechnology, including the editing, adding, or removing of DNA sequences to achieve desired traits.

Displacement

A psychological defense mechanism where mind redirects emotions or feelings from the original source to a less threatening target.

Concepts

Abstract ideas or general notions that represent categories or classes of objects, events, or activities.