Which of the following statements is false?
A) The NPV will be positive if the IRR is less than the cost of capital.
B) If the multiple IRR problem does not exist, any independent project acceptable by NPV method will also be acceptable by the IRR method.
C) When IRR = k (the cost of capital), NPV = 0.
D) The IRR can be positive even if the NPV is negative.
E) The NPV method is not affected by the multiple IRR problem.

Question

Quizplus · Accepted Answer

The NPV will be negative if the IRR is less than the cost of capital.

Which of the Following Statements Is False