Which of the Following Statements Is FALSE

question 64

Multiple Choice

Which of the following statements is FALSE?

• A)When using the incremental IRR rule,you must keep track of which project is the incremental project and ensure that the incremental cash flows are initially positive and then become negative.
• B)Picking one project over another simply because it has a larger IRR can lead to mistakes.
• C)Problems arise using the IRR method when the mutually exclusive investments have differences in scale.
• D)When the risks of two projects are different,only the NPV rule will give a reliable answer.

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Definitions:

Osseous Tissue

is a major structural and supportive connective tissue of the body, forming the skeletal system; also known as bone tissue.

Cancellous Tissue

A spongy type of bone tissue found at the ends of bones and in the interior of vertebrae, known for its porous, honeycombed structure.

Marrow

Marrow is the soft, spongy tissue inside bones that produces blood cells.

Osteoblasts

Cells responsible for bone formation, playing key roles in the growth, repair, and remodeling of bones.