Which of the Following Statements Is FALSE

question 75

Multiple Choice

Which of the following statements is FALSE?

• A)The incremental IRR need not exist.
• B)If a change in the timing of the cash flows does not affect the NPV,then the change in timing will not impact the IRR.
• C)Although the incremental IRR rule can provide a reliable method for choosing among projects,it can be difficult to apply correctly.
• D)When projects are mutually exclusive,it is not enough to determine which projects have positive NPVs.

---

Definitions:

Consumer Price Index

A measure of the average change in prices over time that consumers pay for a basket of goods and services.

Salary Equivalent

The equivalent annual salary amount for non-standard work arrangements when comparing to a full-time salary rate.

Price Index

A measure showing how prices change over time for a fixed basket of products, used to monitor inflation or deflation.

Current Year Income

The total amount of money earned by an individual or entity within the current calendar year.