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:

Grover Cleveland

The 22nd and 24th President of the United States, known for his non-consecutive terms and reform-oriented presidency.

Un-American

Actions or behaviors that are considered contrary to the values, principles, or interests of the United States.

Americanos

A term used in Latin America and Spain to refer to both individuals from the Americas and, more specifically, to people from the United States.

Italian Immigrants

Individuals from Italy who moved to various countries around the world, significantly to the United States during the late 19th and early 20th centuries, in search of better economic opportunities and living conditions.