Which of the Following Statement Is True

question 7

Multiple Choice

Which of the following statement is true?

• A) One must know the discount rate to compute the NPV of a project but one can compute the IRR without referring to the discount rate.
• B) One must know the discount rate to compute the IRR of a project but one can compute the NPV without referring to the discount rate.
• C) Payback accounts for time value of money.
• D) There will always be one IRR regardless of cash flows.
• E) Return on equity is the ratio of total assets to total net incomE.