Which of the Following Statements Is CORRECT

question 85

Multiple Choice

Which of the following statements is CORRECT?

• A) The IRR method appeals to some managers because it gives an estimate of the rate of return on projects rather than a dollar amount,which the NPV method provides.
• B) The discounted payback method eliminates all of the problems associated with the payback method.
• C) When evaluating independent projects,the NPV and IRR methods often yield conflicting results regarding a project's acceptability.
• D) To find the MIRR,we discount the TV at the IRR.
• E) A project's NPV profile must intersect the X-axis at the project's WACC.

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Definitions:

Starting a Business

The act of establishing a new commercial enterprise, involving planning, financial decision-making, and legal setup.

Advantages

These are the benefits or favorable factors that contribute to the success and competitive edge of a business or strategy.

Disadvantages

The negative or less favorable aspects of a situation, plan, or condition that reduce the chance of success or effectiveness.

Home-Based Businesses

Businesses operated from the owner's home, encompassing a wide range of sectors and may be conducted online or through direct sales.