All of the Following Statements Are Correct Except

question 21

Multiple Choice

All of the following statements are correct except:

• A)The NPV and IRR methods will always agree on whether a project enhances or harms shareholder wealth.
• B)If a project has a positive NPV, its IRR will always be greater than the cost of capital.
• C)If a project has a negative NPV, its IRR will always be less than the cost of capital.
• D)There is sometimes a conflict between NPV and IRR in the case of mutually exclusive projects.
• E)all of the above are correct

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Definitions:

Correlation Coefficients

A statistical measure that indicates the extent to which two or more variables fluctuate together.

Relationship

A connection, association, or involvement between two or more individuals, groups, or entities.

Negative Correlation

A relationship between two variables in which one variable increases as the other decreases, and vice versa.

Average Income

A measure of the middle income value for individuals or households within a specific group or country.