Which of the Following Statements Is CORRECT

question 72

Multiple Choice

Which of the following statements is CORRECT?

• A) 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.
• B) Multiple IRRs can exist, but not multiple MIRRs.This is one reason some people favor the MIRR over the regular IRR.
• C) 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.
• D) The percentage difference between the MIRR and the IRR is equal to the project's cost of capital.
• E) 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.

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Definitions:

Free Floating

Referring to anxiety or unease that is not tied to a specific object or situation.

Generalized Anxiety Disorder

A mental health disorder characterized by excessive, uncontrollable worry about everyday things, beyond normal stress or anxiety levels.

Chronic Dread

A persistent and overwhelming feeling of fear and anxiety about the future or unknown.

Pessimism

A predisposition towards observing the most negative aspects of situations or expecting the most unfavorable outcomes; an absence of optimism or trust in what lies ahead.