Which of the Following Statements Is CORRECT

question 53

Multiple Choice

Which of the following statements is CORRECT?

• A) 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.
• B) Multiple IRRs can exist, but not multiple MIRRs. This is one reason some people favor the MIRR over the regular IRR.
• C) 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.
• D) The percentage difference between the MIRR and the IRR is equal to the project's WACC.
• E) 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.

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Definitions:

Cross-Functional HR

An approach to human resource management where HR functions intersect with other departments to enhance organizational performance and strategy.

Collaborative Approach

A method or strategy that emphasizes working together with others in a cooperative manner to achieve shared or common goals.

HR Training

HR Training involves programs and activities designed to develop skills, knowledge, and competencies necessary for employees to perform effectively in their roles, facilitated by the human resources department.

Reciprocal Strategy

A mutual exchange strategy in negotiations or decision-making, where parties provide benefits to each other for mutual advantage.