Which of the Following Statements Is Correct

question 15

Multiple Choice

Which of the following statements is correct?

• A)A project's discounted payback period (DBP) is normally shorter than its traditional payback period (PB) because DPB accounts for the time value of money, whereas PB does not.
• B)To compute the NPV for a project, the firm's required rate of return must be known. To compute a project's internal rate of return (IRR), the firm's required rate of return is not used because the IRR is the discount rate where the project's NPV equals zero.
• C)Two firms could compute different internal rate of return (IRR) for a project if their required rates of return differ.
• D)If a project's net present value (NPV) is equal to its internal rate of return (IRR), the project's value is in equilibrium.
• E)Everything else equal, firms with higher required rates of return generally are able to purchase more capital budgeting projects than firms will lower required rates of return.

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Definitions:

Unstructured Interviews

A qualitative research method involving open-ended, flexible conversations where the interviewer can adjust questions based on the respondent's answers.

Organizational Goals

The objectives or targets that an organization aims to achieve over a certain period.

Authoritarian

A leadership or government style characterized by strong central power and limited political freedoms.

Democratic

Pertaining to a form of government where power is vested in the hands of the people, either directly or through elected representatives.