Which of the following statements is correct?
A. The discounted payback period is generally shorter than the traditional payback period.
B. A project might generate multiple rates of return whenever its internal rate of return (IRR) is greater than the firm's required rate of return.
C. The net present value (NPV) technique and internal rate of return (IRR) technique can lead to conflicting investment decisions when mutually exclusive projects are being evaluated.
D. The net present value (NPV) technique and internal rate of return (IRR) technique can lead to conflicting accept/reject decisions only when independent projects are being evaluated.
E. Larger, longer-term projects are favored over smaller, shorter-term alternatives if the required rate of return is relatively high.
Answer: C
You might also like to view...
When analyzing the content of a proposal, explain the key issues that should be considered?
What will be an ideal response?
The most commonly used adjectives are _____ adjectives. These adjectives tell "what kind of."
Fill in the blank(s) with correct word
During July 2017, Bridgeport Enterprises recorded the following
Sales of $86,400 ($64,500 on account, $21,900 for cash) Collections on account, $58,950 Write-offs of uncollectible receivables, $2,560 Recovery of receivable previously written off, $1,000 Journalize Bridgeport's transactions during July, assuming Bridgeport uses the allowance method. What will be an ideal response
If A and B are mutually exclusive events with P(A) = 0.70, then P(B):
A. can be any value between 0 and 1. B. can be any value between 0 and 0.70. C. cannot be larger than 0.30. D. equals 0.30.