Which of the Following Statements Is CORRECT

question 53

Multiple Choice

Which of the following statements is CORRECT?

• A) 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.
• B) Multiple IRRs can exist, but not multiple MIRRs. This is one reason some people favor the MIRR over the regular IRR.
• C) If a firm uses the discounted payback method with a required payback of 4 years, then it will accept more projects than if it used a regular payback of 4 years.
• D) The percentage difference between the MIRR and the IRR is equal to the project's WACC.
• E) The NPV, IRR, MIRR, and discounted payback (using a payback requirement of 3 years or less) methods always lead to the same accept/reject decisions for independent projects.

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Definitions:

Customer Expectations

The assumed set of beliefs and standards that customers hold regarding the level of quality and service they will receive from a product or service.

Roles And Expectations

Refer to the specific duties, responsibilities, and anticipated outcomes associated with a position or job description.

Transaction Selling

A sales approach focused on completing individual sales or transactions without necessarily building long-term customer relationships.

Customer Satisfaction

Customer satisfaction is a measure of how well a product or service meets or exceeds the expectations of the customer.