Which of the following statements is false?
A) It is possible that an IRR does not exist for an investment opportunity.
B) If the payback period is less than a pre-specified length of time you accept the project.
C) The internal rate of return (IRR) investment rule is based upon the notion that if the return on other alternatives is greater than the return on the investment opportunity you should undertake the investment opportunity.
D) It is possible that there is no discount rate that will set the NPV equal to zero.

Question

Quizplus · Accepted Answer

C) The IRR investment rule is based on the idea that if the average return on the investment opportunity is greater than the return on other alternatives in the market, then you should undertake the investment opportunity.

Which of the Following Statements Is False