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Which of the Following Statements Is Incorrect

Question 3

Multiple Choice

Which of the following statements is incorrect?


A) The payback method ignores the time value of money.
B) The internal rate of return is the actual return on the investment.
C) The net present value method and the profitability index will always result in the same project preference ranking.
D) The profitability index incorporates the time value of money.

Correct Answer:

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