Which of the Following Statements Is CORRECT

question 23

Multiple Choice

Which of the following statements is CORRECT?

• A) one defect of the irr method versus the npv is that the irr does not take account of the time value of money.
• B) one defect of the irr method versus the npv is that the irr does not take account of the cost of capital.
• C) one defect of the irr method versus the npv is that the irr values a dollar received today the same as a dollar that will not be received until sometime in the future.
• D) one defect of the irr method versus the npv is that the irr does not take proper account of differences in the sizes of projects.
• E) one defect of the irr method versus the npv is that the irr does not take account of cash flows over a project's full life.

---

Definitions:

Experimental Research

A method of research that involves manipulating one variable to determine if changes in one variable cause changes in another variable.

Spotlight on Research

A focused examination or highlight of scientific or academic studies, aiming to bring attention to new findings or theories.

Cohen and Colleagues

A reference to a group of researchers led by psychologist Sheldon Cohen, known for their studies on stress, health, and social support.

Response Strength

The extent or intensity of an organism's reaction to a specific stimulus or series of stimuli, often used in behaviorism to measure learning or conditioning.