Which One of the Following Statements Is Correct

question 88

Multiple Choice

Which one of the following statements is correct?

• A) The internal rate of return is the most reliable method of analysis for any type of investment decision.
• B) The payback method is biased towards short-term projects.
• C) The modified internal rate of return is most useful when projects are mutually exclusive.
• D) The average accounting return is the most difficult method of analysis to compute.
• E) The net present value method is only applicable if a project has conventional cash flows.

---

Definitions:

Theory of Emotions

A psychological framework suggesting that emotional experiences arise from physiological responses to external events.

Sociofugal

Space design intended to discourage social interaction among individuals within it.

Territory

An area of land or space that an individual or group claims, controls, or occupies, often marked and defended from others.

Dorm Room

A private living space within a dormitory at a college or university, typically consisting of sleeping and study areas for a single occupant or shared by roommates.