Which of the Following Statements Is False

question 39

Multiple Choice

Which of the following statements is false?

• A) The NPV will be positive if the IRR is less than the required rate of return.
• B) If the multiple IRR problem does not exist,any independent project acceptable by the NPV method will also be acceptable by the IRR method.
• C) When IRR = r (the required rate of return),NPV = 0.
• D) The IRR can be positive even if the NPV is negative.
• E) The NPV method is not affected by the multiple IRR problem.

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Definitions:

Subunit Power

The degree of power held by various organizational subunits, such as departments.

Contracted Out

The process of hiring external organizations or individuals to perform services or tasks rather than using in-house resources.

Organizational Uncertainty

Refers to the lack of predictability and clarity regarding the future direction, decisions, and actions within an organization.

Strategic Contingency

The concept that organizational strategies must be adaptable to current and foreseeable conditions to ensure effectiveness.