Which of the Following Statements Comparing the NPV and IRR

question 45

Multiple Choice

Which of the following statements comparing the NPV and IRR methods is false?

• A) Both the NPV and IRR methods can be used for screening decisions.
• B) Only the NPV method can be used to compare investments of various size or magnitude.
• C) Both the NPV and IRR methods can take income tax effects into account.
• D) Both the NPV and IRR methods are used for long-term decision making.

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Definitions:

Central Nervous System

Comprised of the brain and spinal cord, this system acts as the principal control center for processing and organizing information throughout the body.

Sensory and Motor Neurons

Nerve cells that transmit sensory information (sensory neurons) and those that control muscle movement (motor neurons).

Somatic

Relating to or affecting the body, especially as distinct from the mind or emotions.

Autonomic

Relating to the autonomic nervous system, which controls involuntary bodily functions, including heart rate, digestion, and respiratory rate.