Which of the Following Statements Is CORRECT

question 81

Multiple Choice

Which of the following statements is CORRECT?

• A) if two projects are mutually exclusive, then they are likely to have multiple irrs.
• B) if a project is independent, then it cannot have multiple irrs.
• C) multiple irrs can occur only if the signs of the cash flows change more than once.
• D) if a project has two irrs, then the smaller one is the one that is most relevant, and it should be accepted and relied upon.
• E) for a project to have more than one irr, then both irrs must be greater than the cost of capital.

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Definitions:

Paradigm

A typical example or pattern of something; a model or framework that sets the standard for others to follow.

Pessimism

A tendency to see the worst aspect of things or believe that the worst will happen; a lack of hope or confidence in the future.

Cultural Construals

The ways in which individual perceptions and understandings of the world are shaped by cultural context and influences.

Humanistic Approach

A psychological perspective that emphasizes the study of the whole person and inner feelings to understand human behavior, focusing on concepts such as free will, self-efficacy, and self-actualization.