Which of the Following Statements Is FALSE

question 52

Multiple Choice

Which of the following statements is FALSE?

• A)The IRR investment rule states you should turn down any investment opportunity where the IRR is less than the opportunity cost of capital.
• B)The IRR investment rule states that you should take any investment opportunity where the IRR exceeds the opportunity cost of capital.
• C)Since the IRR rule is based upon the rate at which the NPV equals zero,like the NPV decision rule,the IRR decision rule will always identify the correct investment decisions.
• D)There are situations in which multiple IRRs exist.

---

Definitions:

Peripheral Chemoreceptors

Sensory receptors located in the carotid bodies and aortic bodies that detect changes in the chemical composition of the blood, primarily oxygen, carbon dioxide, and pH levels.

Irritant Receptors

Sensory nerve endings that respond to chemical, mechanical, or thermal stimuli by initiating the reflex actions such as coughing or sneezing.

Expiratory Muscles

Muscles involved in the process of expelling air out of the lungs, such as the internal intercostal muscles and abdominal muscles.

Respiration

The biochemical process by which cells convert glucose and oxygen into energy, carbon dioxide, and water.