23 Which of the Following Statements Is (Are) True? (NPV =

question 25

Multiple Choice

23. Which of the following statements is (are) true? (NPV = net present value, IRR = internal rate of return; in both (I) and (II) , the cost of capital > 0)

a. If the NPVs are same for two different projects (using the same cost of capital and same initial investment) , they must also have same IRR.
b. If an investment ends up with an IRR < 0, then the NPV must also be less than 0.

• A) I only
• B) II only
• C) I & II are true
• D) Neither are true

---

Definitions:

Variable-Interval

A schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed, in the context of behavioral psychology.

Operant Responding

Operant responding involves a type of learning where behavior is modified by its consequences, through reinforcement or punishment, initially described by B.F. Skinner.

Unpredictable

not able to be predicted or foreseen, often because of constant changes or lacking a pattern.

Variable-Interval

A timetable for reinforcement where the time intervals between receiving reinforcement vary around a certain average but are unpredictable.