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:

Total Revenue

The aggregate income a company garners from its sales of goods or provision of services over a designated period.

Quantity Demanded

The specific amount of a good or service consumers are willing to buy at a given price, holding all other factors constant.

Price

The expected, necessary, or contributed financial amount in exchange for something.

Total Revenue

The complete amount of income generated by the sale of goods or services related to the company's primary operations.