Which of the Following Statements Is CORRECT

question 29

Multiple Choice

Which of the following statements is CORRECT?

• A) 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.
• B) 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.
• C) Multiple IRRs can exist, but not multiple MIRRs. This is one reason some people favor the MIRR over the regular IRR.
• D) 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.

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Definitions:

Personal Property

Assets or belongings that are movable and not attached to or associated with the land, as opposed to real property like land or buildings.

Judgment Debts

Money that a court has ordered one party to pay another party.

Transportation

The process or means by which passengers or goods are moved from one location to another.

Lien

A legal right or claim against a property by a creditor to secure the payment of a debt.