Which of the Following Statements Is CORRECT

question 77

Multiple Choice

Which of the following statements is CORRECT?

• A) the discounted payback method eliminates all of the problems associated with the payback method.
• B) when evaluating independent projects, the npv and irr methods often yield conflicting results regarding a project's acceptability.
• C) to find the mirr, we discount the tv at the irr.
• D) a project's npv profile must intersect the x-axis at the project's cost of capital.
• E) the irr method appeals to some managers because it gives an estimate of the rate of return on projects rather than a dollar amount, which the npv method provides.

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Definitions:

Paid Within One Year

Refers to obligations or debts that are due to be paid off within a twelve-month period.

Net Property

The total value of a company’s property, plant, and equipment assets after deducting accumulated depreciation and impairment losses.

Plant And Equipment

Long-term physical assets used in the operation of a business, such as machinery, buildings, and vehicles.

Current Asset

Assets expected to be converted into cash, sold, or used up within one year or within the business's operating cycle, whichever is longer.