Which of the Following Statements Is Correct

question 74

Multiple Choice

Which of the following statements is correct?

• A)The MIRR and NPV decision criteria can never conflict.
• B)The IRR method can never be subject to the multiple IRR problem, while the MIRR method can be.
• C)One reason some people prefer the MIRR to the regular IRR is that the MIRR is based on what is generally a more reasonable assumption about the reinvestment rate than the regular IRR.
• D)The higher the WACC, the shorter the discounted payback period.

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Definitions:

Marginal Benefit

This refers to the additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.

Consumer Surplus

Rephrased: The economic benefit or satisfaction gained by consumers when they pay a price lower than what they are ready to pay for a product or service.

iTunes Download

The action of obtaining digital media files, including music and applications, from Apple's iTunes Store.

Marginal Cost

The cost incurred by producing one more unit of a good or service.