Which of the Following Statements Is CORRECT

question 70

Multiple Choice

Which of the following statements is CORRECT?

• A) If the cost of capital declines, this lowers a project's NPV.
• B) The NPV method is regarded by most academics as being the best indicator of a project's profitability; hence, most academics recommend that firms use only this one method.
• C) A project's NPV depends on the total amount of cash flows the project produces, but because the cash flows are discounted at the WACC, it does not matter if the cash flows occur early or late in the project's life.
• D) The NPV and IRR methods may give different recommendations regarding which of two mutually exclusive projects should be accepted, but they always give the same recommendation regarding the acceptability of a normal, independent project.
• E) The NPV method was once the favorite of academics and business executives, but today most authorities regard the MIRR as being the best indicator of a project's profitability.

---

Definitions:

Attention-getting Resumé

A CV designed with unique elements or qualifications that stand out to capture the attention of potential employers.

Chronological Resumé

A type of resumé that lists job experience in reverse chronological order, starting with the most recent position.

Position Requirements

The specific qualifications, skills, and experiences required for a particular job or role.

Scanned Correctly

Ensures that documents or images have been digitized accurately and without errors, preserving the intended information.