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Which of the Following Statements Is False

Question 18

Multiple Choice

Which of the following statements is false?


A) The IRR investment rule states that you should turn down any investment opportunity where the IRR is less than the opportunity cost of capital.
B) The IRR investment rule states that you should take any investment opportunity where the IRR exceeds the opportunity cost of capital.
C) Since the IRR rule is based upon the rate at which the NPV equals zero, like the NPV decision rule, the IRR decision rule will always identify the correct investment decisions.
D) There are situations in which multiple IRRs exist.

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