Which of the Following Statements Is False

question 11

Multiple Choice

Which of the following statements is false?

• A) The incremental IRR need not exist.
• B) If a change in the timing of the cash flows does not affect the NPV, then the change in timing will not impact the IRR.
• C) Although the incremental IRR rule can provide a reliable method for choosing among projects, it can be difficult to apply correctly.
• D) When projects are mutually exclusive, it is not enough to determine which projects have positive NPVs.

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Definitions:

Job M

A specific production or project operation identified by a unique job number for costing purposes.

Overhead Applied

Overhead applied refers to the allocation of indirect costs to specific products or production areas based on a predetermined rate or method.

Job A578

A specific project or task within an organization, identified by the code A578 for tracking and cost allocation purposes.

Predetermined Manufacturing Overhead

The estimated cost of manufacturing overhead assigned to each unit of production, based on a predetermined rate.