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:

Psychographics

A marketing research method that analyzes consumer lifestyles, values, attitudes, and personality traits to better understand their buying behavior.

Made The Purchase

The act of buying or acquiring goods or services through a transaction or exchange.

Millennials

The generation born between 1978 and the late twentieth century. Also known as Generation Y.

Authentic

Genuine or original, not copied or false; true to its own personality or character.