Which of the Following Statements Is Correct

question 29

Multiple Choice

Which of the following statements is correct?

• A)The internal rate of return (IRR) does not allow you to determine whether mutually exclusive projects are acceptable.
• B)The net present value (NPV) is the only capital budgeting technique that allows you to determine which independent projects are acceptable.
• C)The net present value (NPV) technique provides an indication of the dollar benefit (on a present value basis) to the firm's shareholders of purchasing a capital budgeting project.
• D)A project's internal rate of return (IRR) depends on the firm's required rate of return, which means that a project's IRR is different for each firm that has a different required rate of return.
• E)The net present value (NPV) technique contains information about a project's safety margin, which is not inherent in the internal rate of return (IRR).

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Definitions:

Months

Divisions of the year, typically consisting of four weeks, used to measure time in calendar systems.

HRM Effectiveness

The efficiency and performance of human resource management in meeting the organization's goals and employee satisfaction.

Maturity

Maturity in a business context refers to the stage at which an organization or process has reached its maximum potential or development, often characterized by a period of stability and high performance.

Customer Satisfaction

The measure of how products or services provided by a company meet or surpass customer expectation.