Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. which of the following statement is false? a. t

Which of the following statement is FALSE? a. The IRR method is...

50.1K

Verified Solution

Question

Finance

  1. Which of the following statement is FALSE?

a. The IRR method is worse than the PI method for capital budgeting analysis.

b. For a single project, the positive NPV indicates that the IRR is greater than the required rate of return.

c. The positive NPV is equivalent to the PI being greater than one.

d. As the required rate of return increases, the IRR should also increase.

e. There can be a ranking conflict between the NPV and PI when two projects are mutually exclusive.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

How can a business owner plan asset acquisitions to fully utilize the Section 179 deduction?

Finance
Q

. You are doing an internship in strength and conditioning and working with athletes on acceleration...

Medical Sciences
Q

Choose two of the popular gender-role development theories (Biosocial, Social Learning, Kolberg's Cognitive Development Theory, and Gender-Schema...

Psychology
Q

A homeowner wants to purchase multiple electric pumps and operate them in parallel to ensure that...

Statistics
Q

The drama club is selling tickets to their play to raise money for the show's...

Basic Math
Q

In statistics an association refers to a linear or curved pattern of joint variation between...

Statistics
Q

On January 1, Year 1, Jones Company issued bonds with a $215,000 face...

Accounting
Q

JL PA8-2(Algo) Interpreting Disclosure of Allowance for Doubtful Accounts [LO 8-2] balance at the beginning...

Accounting
Q

Question 3 of 15. A sole proprietorship that began business on May 1, 2020, incurred...

Accounting
Q

gimbel owns 10,000 shares, representing 50% ownership of yelene. its investment accont at the beginning...

Accounting
Q

La cuenta de Previsin para Cuentas de Dudoso Cobro es una contracuenta que compensa: A....

Accounting
Q

The foundation of accounting consists of a set of generally accepted accounting principles. True or...

Accounting