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Which of the Following Statements Is FALSE

Question 41

Multiple Choice

Which of the following statements is FALSE?


A) Problems can arise using the IRR method when the mutually exclusive investments have different cash flow patterns.
B) The IRR is affected by the scale of the investment opportunity.
C) Multiple incremental IRRs might exist.
D) The incremental IRR rule assumes that the riskiness of the two projects is the same.

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