Which of the Following Statements Is False

question 64

Multiple Choice

Which of the following statements is false?

• A) The IRR investment rule states that you should turn down any investment opportunity where the IRR is less than the opportunity cost of capital.
• B) The IRR investment rule states that you should take any investment opportunity where the IRR exceeds the opportunity cost of capital.
• C) Since the IRR rule is based upon the rate at which the NPV equals zero, like the NPV decision rule, the IRR decision rule will always identify the correct investment decisions.
• D) There are situations in which multiple IRRs exist.

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Definitions:

Multicultural

Relating to, or representing several different cultures or cultural elements.

Utilitarianism

A moral philosophy that advocates for actions that maximize happiness and well-being for the majority.

Rawls

A philosopher best known for his theory of justice as fairness, which emphasizes principles of equality and liberty in organizing society.

Kant

Refers to Immanuel Kant, an 18th-century German philosopher known for his work in epistemology, ethics, and metaphysics, emphasizing duty, moral law, and the categorical imperative.