Which of the Following Statements Comparing the NPV and IRR

question 45

Multiple Choice

Which of the following statements comparing the NPV and IRR methods is false?

• A) Both the NPV and IRR methods can be used for screening decisions.
• B) Only the NPV method can be used to compare investments of various size or magnitude.
• C) Both the NPV and IRR methods can take income tax effects into account.
• D) Both the NPV and IRR methods are used for long-term decision making.

Identify and calculate the protective measures and hedge ratios applicable in risk management contexts.

Analyze the use and calculation of dollar values in futures contracts.

Understand the concept and function of futures contracts and their use in financial markets.

Recognize the role and mechanism of margin and maintenance margin in futures trading.

---

Definitions:

Relevant

Relevant, in a financial or accounting context, refers to information that is applicable and helpful for decision-making purposes.

Predictive Value

The likelihood that a specific condition or attribute accurately predicts the outcome of interest.

Feedback Value

The importance or usefulness of feedback received for improving performance or decision-making processes.

Stockholders' Equity

The remaining value in a company's assets after liabilities are subtracted, commonly known as owner's equity or shareholder's equity.