Identify Which One of the Following Statements Is True

Multiple Choice

Identify which one of the following statements is true.

A) Comparisons between alternatives are best made without considering tax effects.
B) Predictions of cash flows and discount rates should be computed without regard to inflation.
C) When two projects are mutually exclusive, the project that has the smallest net present value should be undertaken.
D) If alternate projects have unequal lives, comparisons may be made over the useful life of either the longer-lived project or the shorter-lived one.