Which One of the Following Statements Is Correct

question 91

Multiple Choice

Which one of the following statements is correct?

• A)If the IRR exceeds the required return, the profitability index will be less than 1.0.
• B)The profitability index will be greater than 1.0 when the net present value is negative.
• C)When the internal rate of return is greater than the required return, the net present value is positive.
• D)Projects with conventional cash flows have multiple internal rates of return.
• E)If two projects are mutually exclusive, you should select the project with the shortest payback period.

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Definitions:

Environmental Performance

A measure of how well an individual, organization, government, or other entity is performing in relation to environmental goals, standards, or regulations.

Grand Plan

A comprehensive scheme or strategy designed to achieve a major or overall goal.

Hawthorne Effect

A psychological phenomenon in which individuals improve or modify their behavior in response to their awareness of being observed.

Lean Operation

A methodology focused on minimizing waste within manufacturing systems while simultaneously maximizing productivity.