Which of the Following Statements Is False

question 20

Multiple Choice

Which of the following statements is false?

• A) The payback investment rule is based on the notion that an opportunity that pays back its initial investments quickly is a good idea.
• B) An IRR will always exist for an investment opportunity.
• C) An NPV will always exist for an investment opportunity.
• D) In general, there can be as many IRRs as the number of times the project's cash flows change sign over time.

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Definitions:

Deferred Asset

An expenditure that has been made and recorded but will not be recognized as an expense until future accounting periods.

Damages Award

Compensation determined by a court or agreement for losses or harm suffered by a party due to another's actions or failures.

Provisions Disclosure

The requirement in financial reporting to disclose information about any significant provisions for future liabilities or charges.

Comparatives

Financial data presented alongside current figures for the purpose of comparison with previous periods.