Which of the Following Statements Is Incorrect

question 50

Multiple Choice

Which of the following statements is incorrect?

• A) It is possible to compute multiple IRRs for a single project.
• B) A problem with IRR is that it does not adjust for the scale of the project.
• C) A NPV profile plots the relationship between the riskiness of a project and the associated NPVs.
• D) The NPV and IRR always provide the same rankings for a set of possible projects.
• E) IRR provides information in a form that is useful to managers.

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Definitions:

Recessions

Periods of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in successive quarters.

Deficit

A deficit occurs when expenses exceed revenues, imports exceed exports, or liabilities exceed assets.

Current Expenditures

Spending by the government or an organization on short-term items that are consumed within the fiscal year, such as wages, utilities, and supplies.

Future Generations

Future generations refer to the people who will live at some point in the future, and whose well-being is considered in discussions about sustainability and long-term environmental policies.