Which of the Following Statements Is False

question 45

Multiple Choice

Which of the following statements is false?

• A) Problems can arise using the IRR method when the mutually exclusive investments have different cash flow patterns.
• B) The IRR is affected by the scale of the investment opportunity.
• C) Multiple incremental IRRs might exist.
• D) The incremental IRR rule assumes that the riskiness of the two projects is the same.

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Definitions:

Coordinate Economic Activity

The process of organizing and managing various facets of the economy to ensure efficient and effective functioning.

Technology Used

Refers to the application of scientific and technical knowledge to production processes to improve efficiency, increase output, or create new products.

Quantity and Quality

Refers to the amount and the standard of a product or service, indicating its overall value or suitability.

Coincidence of Wants

A situation in a barter system where two parties each have something the other wants, facilitating an exchange without the need for money.