All of the Following Statements Are Correct Except

question 77

Multiple Choice

All of the following statements are correct except:

• A) The NPV and IRR methods will always agree on whether a project enhances or harms shareholder wealth.
• B) If a project has a positive NPV, its IRR will always be greater than the cost of capital.
• C) If a project has a positive NPV, its IRR will always be less than the cost of capital.
• D) There is sometimes a conflict between NPV and IRR in the case of mutually exclusive projects.

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Definitions:

Functional Groupings

The arrangement of jobs or tasks in an organization based on similar roles, skills, or processes.

Organizational Structure

The arrangement of activities, processes, reporting hierarchies, and communication pathways that connect the various segments of an organization.

Different Departments

Refers to the various specialized divisions within an organization, each responsible for specific tasks or functions.

Line Positions

Roles within an organization that are directly involved in achieving its core business objectives, typically involving decision-making authority.