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:

Laboratory Setting

A controlled environment where scientific research, experiments, and measurement are conducted.

Statistical Analysis

The application of statistical methods and techniques to collect, review, analyze, and draw conclusions from data.

Dependent Variable

In scientific research, it refers to the variable that researchers are interested in observing or measuring, which is expected to change as a result of manipulations to the independent variable.

Control Group

A group in an experiment that does not receive the experimental treatment, allowing for a comparison against the group that does.