Which of the Following Statements Is Correct

question 2

Multiple Choice

Which of the following statements is correct?

• A) The discounted payback is generally shorter than the regular payback.
• B) Any type of project might have multiple rates of return if the IRR is sufficiently high.
• C) The NPV and IRR methods can lead to conflicting accept/reject decisions only if (1)mutually exclusive projects are being evaluated and (2)if the projects' NPV profiles cross at a rate less than the firm's required rate of return.
• D) The NPV and IRR methods can lead to conflicting accept/reject decisions only if (1)mutually exclusive projects are being evaluated and (2)if the projects' NPV profiles cross at a rate greater than the firm's required rate of return.
• E) None of the above is a correct statement.