Which of the following statements is correct?
A)In general, the NPVs of riskier cash flows should be found using relatively high discount rates.However, if a cash flow is negative, it should be evaluated using a low discount rate.
B)If a project has only costs (no revenues) as would certain environmental projects, then the project is likely to have two regular IRRs.
C)If the NPV and IRR methods give conflicting rankings for two mutually exclusive projects, the payback period should be used to choose the project that should be purchased.
D)It is better to use the NPV method to evaluate independent projects, but for mutually exclusive projects, especially if projects vary greatly in size, the IRR method is better.
E)None of the above is a correct statement.

Question

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The Answer of Which of the following statements is correct?
A)In general, the NPVs of riskier cash flows should be found using relatively high discount rates.However, if a cash flow is negative, it should be evaluated using a low discount rate.
B)If a project has only costs (no revenues) as would certain environmental projects, then the project is likely to have two regular IRRs.
C)If the NPV and IRR methods give conflicting rankings for two mutually exclusive projects, the payback period should be used to choose the project that should be purchased.
D)It is better to use the NPV method to evaluate independent projects, but for mutually exclusive projects, especially if projects vary greatly in size, the IRR method is better.
E)None of the above is a correct statement.

Which of the Following Statements Is Correct