Which of the Following Statements Is False

question 2

Multiple Choice

Which of the following statements is false?

• A) The NPV will be positive if the IRR is less than the cost of capital.
• B) If the multiple IRR problem does not exist, any independent project acceptable by NPV method will also be acceptable by the IRR method.
• C) When IRR = k (the cost of capital), NPV = 0.
• D) The IRR can be positive even if the NPV is negative.
• E) The NPV method is not affected by the multiple IRR problem.