Which of the Following Statements Is FALSE

question 28

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 internal rate of return (IRR) will always exist for an investment opportunity.
• C) A net present value (NPV) will always exist for an investment opportunity.
• D) In general, there can be as many internal rates of return (IRRs) as the number of times the project's cash flows change sign over time.

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Definitions:

Misinterpreted

Wrongly understood or explained, leading to confusion or incorrect conclusions.

Forgotten

relates to something that has been overlooked or is no longer remembered or considered.

Cooperative

Involving mutual assistance in working toward a common goal, emphasizing teamwork and collaboration.

Team Oriented

A mindset or approach that prioritizes collaboration and collective effort towards achieving a common goal.