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:

Composite Units

A measure used in cost accounting to group heterogeneous products or services into a single unit for costing purposes.