Which of the Following Statements Is FALSE

question 52

Multiple Choice

Which of the following statements is FALSE?

• A)The IRR investment rule states you should turn down any investment opportunity where the IRR is less than the opportunity cost of capital.
• B)The IRR investment rule states that you should take any investment opportunity where the IRR exceeds the opportunity cost of capital.
• C)Since the IRR rule is based upon the rate at which the NPV equals zero,like the NPV decision rule,the IRR decision rule will always identify the correct investment decisions.
• D)There are situations in which multiple IRRs exist.

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Definitions:

Social Institutions

Established systems and structures within society that dictate certain patterns of behavior, such as family, education, government, or religion.

Stereotype

A widely held but fixed and oversimplified image or idea of a particular type of person or thing.

Prototype

Describes an early model or initial release of a product designed to test a concept or process, serving as a typical example of a category.

Cultural Traits

Characteristics that define a particular culture, including language, religion, cuisine, social habits, music, and arts.