What Is the Decision Rule in the Case of Sign

question 111

Multiple Choice

What is the decision rule in the case of sign changes that produce multiple IRRs for a project?

• A) Select the lowest IRR to be conservative
• B) Select the highest IRR to maximize the benefits
• C) Any or all of the IRRs are justified to use
• D)Evaluate the project according to NPV

---

Definitions:

Statute of Frauds

A legal doctrine that requires certain types of contracts to be in writing and signed by the party to be charged, in order to be legally enforceable.

Land Leases

Agreements in which landowners allow tenants to use their land for a specified period and conditions, without transferring ownership.

Ancestral Property

Property or assets that are inherited from ancestors, usually passed down through generations within a family.

Memorialize

To record or preserve something in a lasting form, often used in legal contexts to refer to the documentation of agreements or decisions.