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:

Expected Outcome

The anticipated result or effect of an action, process, or experiment.

Experiment

An experiment conducted for the purpose of discovering something new, verifying a hypothesis, or proving an established fact.

Ganzfeld Procedure

An experimental technique used in parapsychology to test individuals for extrasensory perception, involving sensory deprivation.

Psychic Abilities

Claimed supernatural talents that allow individuals to perceive or influence external events beyond the capacity of scientific explanation.