Which of the Following Statements Is CORRECT

question 71

Multiple Choice

Which of the following statements is CORRECT?

• A) One defect of the IRR method versus the NPV is that the IRR does not take account of the time value of money.
• B) One defect of the IRR method versus the NPV is that the IRR does not take account of the cost of capital.
• C) One defect of the IRR method versus the NPV is that the IRR values a dollar received today the same as a dollar that will not be received until sometime in the future.
• D) One defect of the IRR method versus the NPV is that the IRR does not take proper account of differences in the sizes of projects.
• E) One defect of the IRR method versus the NPV is that the IRR does not take account of cash flows over a project's full life.

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Definitions:

Internal Variables

Factors within a system or organism that influence its functioning or behavior.

Socioeconomic Factors

Aspects of society and economy that influence individuals' health, well-being, and quality of life, including income, education, and employment status.

Cultural Background

The cultural heritage, traditions, practices, and beliefs that contribute to an individual's identity and worldview.

Maintenance

The process of preserving something in a desired condition by performing regular checks and repairs.