試題詳解

1.Which of the following statements is false regarding the investment decision rules?
(A) The internal rate of return (IRR) rule works for a stand-alone project if all of the project's negative cash flows precede its positive cash flows.
(B) There are situations in which IRRs do not exist.
(C)If a change in the timing of the cash flows does not affect the net present value (NPV), then the change in timing will not impact the IRR.
(D)The incremental IRR tells us the discount rate at which it becomes profitable to switch from one project to the other.
(E)Problems arise using the IRR rule when the mutually exclusive investments have different scales.