QUESTION 3 5.00000 points Save Answer Which one of the following statements is N

Question

QUESTION 3 5.00000 points Save Answer Which one of the following statements is NOT always correct? Projects with unconventional cash flows will have multiple internal rates of return. If two projects are mutually exclusive, you should select the project with the highest internal rate of returrn The profitability index is the expected dollar return per dollar spent on a given project. When the internal rate of return is greater than the required return, the net present value is positive. A shorter payback period is preferred over a longer payback period

Explanation / Answer

Question - 3

Option - E

Payback does not consider post payback profitability. Hence a shorter pay back does not always be a best selection.

Question - 13

Option - A I , II and IV only

III is not relevant cashflow for a new project under consideration.

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