Which of the Following Statements Is FALSE

question 78

Multiple Choice

Which of the following statements is FALSE?

• A)The payback investment rule is based on the notion that an opportunity that pays back its initial investments quickly is a good idea.
• B)An IRR will always exist for an investment opportunity.
• C)A NPV will always exist for an investment opportunity.
• D)In general,there can be as many IRRs as the number of times the project's cash flows change sign over time.

---

Definitions:

Tax Expenditures

Governmental financial benefits conferred through tax policies, allowing individuals or corporations to reduce their tax liabilities through deductions, exemptions, or credits.

Means-tested Benefit

Government assistance programs that provide benefits based on the recipient's income and assets, ensuring aid goes to those in financial need.

Entitlement

A government program guaranteeing access to benefits by members of a specific group and based on established rights or by legislation.

Policy Feedback

The process by which existing policies influence future political behavior, public attitudes, and policy formulations.