Which of the Following Statements Is FALSE

question 78

Multiple Choice

Which of the following statements is FALSE?

• A)The payback investment rule is based on the notion that an opportunity that pays back its initial investments quickly is a good idea.
• B)An IRR will always exist for an investment opportunity.
• C)A NPV will always exist for an investment opportunity.
• D)In general,there can be as many IRRs as the number of times the project's cash flows change sign over time.

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Definitions:

Concrete Operational Thought

Piaget’s term for the ability to reason logically about direct experiences and perceptions.

Formal Operational Thought

The final stage of cognitive development (according to Piaget), characterized by the ability to think abstractly, logically, and systematically.

Imaginary Audience

A psychological concept where an individual imagines and believes that multitudes of people are enthusiastically listening to or watching them.

Invincibility Fable

A cognitive bias often found in adolescents, believing themselves to be immune to common dangers.