Which of the Following Statements Is FALSE

question 75

Multiple Choice

Which of the following statements is FALSE?

• A)The incremental IRR need not exist.
• B)If a change in the timing of the cash flows does not affect the NPV,then the change in timing will not impact the IRR.
• C)Although the incremental IRR rule can provide a reliable method for choosing among projects,it can be difficult to apply correctly.
• D)When projects are mutually exclusive,it is not enough to determine which projects have positive NPVs.

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Definitions:

S Corporation Election

A tax status election made by a corporation with the Internal Revenue Service to be taxed as a pass-through entity, avoiding double taxation on corporate income.

Shareholders' Consent

The approval or agreement by shareholders, often required for major company decisions, typically obtained through voting mechanisms.

Majority

Majority refers to more than half of a particular group or amount, often used to describe the requirement for decision-making in voting contexts.

Certificate of Authority

A document that grants a company the legal right to conduct business outside of its original state of registration.