Which of the Following Statements Is True of Various Methods

question 48

Multiple Choice

Which of the following statements is true of various methods for capital budgeting?

• A) The discounted payback is generally shorter than the regular payback.
• B) Any type of project might have multiple rates of return if the IRR is more than the opportunity rate of return.
• C) The NPV and IRR methods can lead to conflicting accept/reject decisions only if mutually exclusive projects are being evaluated
• D) The NPV and IRR methods can lead to conflicting accept/reject decisions only if independent projects are being evaluated
• E) Larger, longer-term projects are favored over smaller, shorter- term alternatives if the required rate of return is relatively high.