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:

Standard

A level of quality or attainment used as a measure, norm, or model in comparative evaluations.

Modeling

A learning process where individuals emulate or adopt behaviors, attitudes, or values observed in others.

Bobo Doll Study

An experiment conducted by Albert Bandura that demonstrated how children can learn aggressive behaviors through the observation of adult models.

Demonstrates

Involves showing or proving something through evidence or argument.