Which of the Following Statements Is CORRECT

question 56

Multiple Choice

Which of the following statements is CORRECT?

• A) The NPV method was once the favorite of academics and business executives,but today most authorities regard the MIRR as being the best indicator of a project's profitability.
• B) If the cost of capital declines,this lowers a project's NPV.
• C) The NPV method is regarded by most academics as being the best indicator of a project's profitability,hence most academics recommend that firms use only this one method and disregard other methods.
• D) A project's NPV depends on the total amount of cash flows the project produces,but because the cash flows are discounted at the WACC,it does not matter if the cash flows occur early or late in the project's life.
• E) The NPV and IRR methods may give different recommendations regarding which of two mutually exclusive projects should be accepted,but they always give the same recommendation regarding the acceptability of a normal,independent project.

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Definitions:

ABC

A model or approach in various fields; commonly, in psychology, it stands for Antecedent, Behavior, Consequence, encapsulating a framework for understanding behavior.

Behavior Chain

A sequence of events or actions linked together, where one action triggers the next, often used in behavior analysis and modification.

Nutrition Counseling

The process where a nutrition expert advises individuals on dietary habits and strategies to promote health and manage diseases.

Goal Setting

The process of identifying specific, measurable, achievable, relevant, and time-bound objectives to strive for.