Which of the following statements is false?
A) The incremental IRR need not exist.
B) If a change in the timing of the cash flows does not affect the NPV, then the change in timing will not impact the IRR.
C) Although the incremental IRR rule can provide a reliable method for choosing among projects, it can be difficult to apply correctly.
D) When projects are mutually exclusive, it is not enough to determine which projects have positive NPVs.

Question

Quizplus · Accepted Answer

B) The IRR can be altered by changing the timing of the cash flows, even when that change in timing does not affect the NPV.

Which of the Following Statements Is False