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:

Low-risk Group

A classification referring to individuals or entities that have a lower chance of experiencing a negative event compared to others.

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, typically measured to assess overall cardiovascular health.

Unequal-variances Test

A statistical method used when comparing two groups or samples that are assumed to have different variances, to evaluate if their means are significantly different.

Independent Populations

Populations that are not related or affected by each other, allowing for assumptions of independence in statistical tests.