Which of These Statements About Valuation Models Is NOT Correct

question 97

Multiple Choice

Which of these statements about valuation models is NOT correct?

• A)NPV employs a weighted average cost of capital discount rate that reflects potential reinvestment.
• B)IRR and NPV calculations typically make the same investment recommendations only when the projects are independent of each other.
• C)If cash flows are not normal,IRR may arrive at multiple solutions.
• D)IRR is a more robust determinant of project viability than NPV.

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Definitions:

Hackman-Oldham's Model

Hackman-Oldham's Model is a theory of job design that emphasizes the importance of certain job characteristics in enhancing employee motivation and satisfaction.

Skill Variety

The opportunity and ability to use numerous different skills in one’s position at work.

Task Identity

The worker's perception of the meaningfulness of a job, often based upon the worker’s permission to start a job and see it through to completion.

Autonomy

The right or condition of self-government, or in a personal context, the capacity to make an informed, uncoerced decision.