Which of the Following Statements Is Correct

question 78

Multiple Choice

Which of the following statements is correct?

• A)The discounted payback is generally shorter than the regular payback.
• B)Any type of project might have multiple rates of return if the IRR is sufficiently high.
• C)The NPV and IRR methods can lead to conflicting and accept/reject decisions only if (1) mutually exclusive projects are being evaluated and (2) if the projects' NPV profiles cross at a rate less than the firm's cost of capital.
• D)The NPV and IRR methods can lead to conflicting accept/reject decisions only if (1) mutually exclusive projects are being evaluated and (2) if the projects' NPV profiles cross at a rate greater than the firm's cost of capital.
• E)None of the above is a correct statement.

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Definitions:

Online Transaction Systems

Digital platforms and methods used for conducting financial transactions over the internet.

Wrongfully Dishonored

Pertains to the improper refusal by a bank to pay a legitimate draft or check presented for payment.

UCC

The Uniform Commercial Code consists of a wide-ranging group of laws that control every aspect of commercial transactions in the United States.

Cut-off Hour

A specific time by which transactions or actions must be completed to be processed on the same day, commonly used in banking.