Which of the Following Statements Is FALSE

question 64

Multiple Choice

Which of the following statements is FALSE?

• A)When using the incremental IRR rule,you must keep track of which project is the incremental project and ensure that the incremental cash flows are initially positive and then become negative.
• B)Picking one project over another simply because it has a larger IRR can lead to mistakes.
• C)Problems arise using the IRR method when the mutually exclusive investments have differences in scale.
• D)When the risks of two projects are different,only the NPV rule will give a reliable answer.