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Which of the Following Statements Is True of Various Methods

Question 22

Multiple Choice

Which of the following statements is true of various methods for capital budgeting?


A) The discounted payback is generally shorter than the regular payback.
B) Any type of project might have multiple rates of return if the IRR is more than the opportunity rate of return.
C) The NPV and IRR methods can lead to conflicting accept/reject decisions only if mutually exclusive projects are being evaluated
D) The NPV and IRR methods can lead to conflicting accept/reject decisions only if 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.

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