Which of the Following Statements Is CORRECT

question 99

Multiple Choice

Which of the following statements is CORRECT?

• A) One defect of the IRR method versus the NPV is that the IRR does not take account of cash flows over a project's full life.
• B) One defect of the IRR method versus the NPV is that the IRR does not take account of the time value of money.
• C) One defect of the IRR method versus the NPV is that the IRR does not take account of the cost of capital.
• D) One defect of the IRR method versus the NPV is that the IRR values a dollar received today the same as a dollar that will not be received until sometime in the future.
• E) One defect of the IRR method versus the NPV is that the IRR does not take proper account of differences in the sizes of projects.

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Definitions:

Simple Random Sample

A portion of a statistical group where every member has the same chance of selection.

Random

Lacking pattern, purpose, or predictability, often used in the context of selecting items or events in a way that each has an equal chance of being chosen.

Average Age

The mean value of the ages of individuals in a particular group, calculated by summing their ages and dividing by the number of individuals.

Sampling Frame

The list or database from which a sample is drawn for a study, containing all the elements that define the population.