Which of the Following Statements Is False

question 26

Multiple Choice

Which of the following statements is False?

• A) The net present value method always indicates the project that maximizes the net present value of present and future cash flows.
• B) The internal rate of return method can rank projects differently from the net present value method if the alternative projects have uneven lives.
• C) The profitability index is superior to the internal rate of return on small projects.
• D) The internal rate of return assumes that the reinvestment rate is equal to the indicated rate of return.
• E) The internal rate of return method can rank projects differently from the net present value method if the alternative projects have unequal lives, or unequal investments.

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Definitions:

Consumerism

A movement, made up of citizens and government entities, that focuses on protecting consumers and promoting their interests.

Consumers

Individuals or entities that purchase goods or services for personal use and not for manufacturing or resale purposes.

Consumerism

The societal and economic order that encourages the acquisition of goods and services in ever-increasing amounts.

Government Agencies

Organizations established by a government to perform specific functions, such as regulation or enforcement of laws and policies.