Which of the Following Statements Is FALSE

question 7

Multiple Choice

Which of the following statements is FALSE?

• A)The incremental IRR investment rule applies the IRR rule to the difference between the cash flows of the two mutually exclusive alternatives.
• B)When a manager must choose among mutually exclusive investments,the NPV rule provides a straightforward answer.
• C)The likelihood of multiple IRRs is greater with the regular IRR rule than with the incremental IRR rule.
• D)Problems can arise using the IRR method when the mutually exclusive investments have differences in scale.

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