Which of the Following Statements Is Correct

question 95

Multiple Choice

Which of the following statements is correct?

• A)For independent projects, the NPV, IRR, MIRR, and discounted payback (using a payback requirement of three years or less) methods always lead to the same accept/reject decisions for a given project.
• B)For mutually exclusive projects with normal cash flows, the NPV and MIRR methods can never conflict, but their results could conflict with the discounted payback and the regular IRR methods.
• C)Multiple IRRs can exist, but not multiple MIRRs. This is one reason some people favour the MIRR over the regular IRR.
• D)If a firm uses the discounted payback method with a required payback of four years, then it will accept more projects than if it used as its cutoff criterion a regular payback of four years.

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Definitions:

Neoclassicism

A style of art and architecture that emerged in the late 18th century as part of a general revival of interest in classical cultures. Neoclassical artists adopted themes and styles from ancient Greece and Rome.

Enlightenment

A philosophical movement of the 18th century, emphasizing reason and individualism rather than tradition, and advocating for government, ethics, and science based on rationality.

Grand Tour

An educational rite of passage in the 17th through 19th centuries, where young European aristocrats traveled to key cultural sites, especially in Italy.

Jacques-Louis David

An influential French painter in the Neoclassical style, known for his historical and politically charged works, including "The Death of Marat."