Which of the Following Statements Is TRUE

question 113

Multiple Choice

Which of the following statements is TRUE?

• A) The IRR of every project is based on it achieving a Net Present Value of zero.
• B) It is preferable for the calculated IRR of a project to be below bank interest rates,
• C) Discounted cash flows do not usually take into account the time value of money.
• D) When comparing two projects, the one with the lower NPV should be preferred.

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Definitions:

Fire Alarm

A device designed to detect fire or smoke and emit a loud warning sound to alert occupants of potential danger.

Cold Temperature

Refers to lower temperatures that can be naturally occurring or artificially created, often perceived as uncomfortable or requiring physiological adaptation by organisms.

Sensory Adaptation

The process by which sensory receptors become less sensitive over time when exposed to constant stimuli.

Unchanging Stimulus

A stimulus that remains constant over time without variation, which can sometimes lead to habituation, where the response to the stimulus decreases.