Which of the Following Statements Is Correct

question 77

Multiple Choice

Which of the following statements is correct?

• A)One advantage of the NPV over the IRR is that NPV takes account of cash flows over a project's full life whereas IRR does not.
• B)One advantage of the NPV over the IRR is that NPV assumes that cash flows will be reinvested at the WACC, whereas IRR assumes that cash flows are reinvested at the IRR. The NPV assumption is generally more likely to be appropriate.
• C)One advantage of the NPV over the MIRR method is that NPV takes account of cash flows over a project's full life whereas MIRR does not.
• D)One advantage of the NPV over the MIRR method is that NPV discounts cash flows whereas the MIRR is based on undiscounted cash flows.

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Definitions:

Implementing Change

The process of applying strategies and actions to transform an organization's goals, processes, technologies, or culture to improve efficiency and effectiveness.

Diagnosing Needs

The process of identifying and assessing gaps between current and desired performance or outcomes, often used in organizational development and training.

Change Process

The sequence of steps or actions that are taken in order to successfully implement new methods, practices, or systems in an organization.

Double-Loop Learning

A method of learning that involves questioning current assumptions, examining a problem from different perspectives, and questioning the validity of the problem.