Which of the Following Statements Is CORRECT

question 21

Multiple Choice

Which of the following statements is CORRECT?

• A) One defect of the IRR method is that it does not take account of the time value of money.
• B) One defect of the IRR method is that it does not take account of the cost of capital.
• C) One defect of the IRR method is that it 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 is that it assumes that the cash flows to be received from a project can be reinvested at the IRR itself, and that assumption is often not valid.
• E) One defect of the IRR method is that it does not take account of cash flows over a project's full life.

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Definitions:

Conformist

An individual who follows the customs, rules, or styles of a group, opting to fit in rather than stand out.

Exemplary

Serving as a desirable model; representing the best of its kind.

Ethnic Women

Women who are identified by their cultural, racial, or ethnic background, emphasizing the diversity and varying experiences within socio-cultural contexts.

Leaders

Individuals who guide, direct, or influence others in a group or organization, often by providing vision, strategies, and decision-making.