Which of the Following Statements Is FALSE

question 7

Multiple Choice

Which of the following statements is FALSE?

• A)The incremental IRR investment rule applies the IRR rule to the difference between the cash flows of the two mutually exclusive alternatives.
• B)When a manager must choose among mutually exclusive investments,the NPV rule provides a straightforward answer.
• C)The likelihood of multiple IRRs is greater with the regular IRR rule than with the incremental IRR rule.
• D)Problems can arise using the IRR method when the mutually exclusive investments have differences in scale.

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry, where it involves the machinery and equipment developed from such scientific knowledge.

Government

An organized group of people that governs a community, region, or country, often responsible for creating and enforcing laws, policies, and managing public services.

Economic Forces

Factors that influence the direction of economic activities and trends, such as supply and demand, inflation, and employment levels.

Nonmedia Social Factors

Influences on society and individuals that originate outside of media sources, such as family, education, and socio-economic status.