Which of the following statements is/are false? All the statement given here are

Question

Which of the following statements is/are false?

All the statement given here are false.

The NPV will be positive if the IRR is less than the cost of capital (K).

When IRR=K, NPV= 0 (K is the cost of capital).

Any independent project acceptable by the NPV method will also be acceptable by the IRR method (if the multiple IRR does not exist).

All the statement given here are false.

The NPV will be positive if the IRR is less than the cost of capital (K).

When IRR=K, NPV= 0 (K is the cost of capital).

Any independent project acceptable by the NPV method will also be acceptable by the IRR method (if the multiple IRR does not exist).

Explanation / Answer

The following statement is False:

The NPV will be positive if the IRR is less than the cost of capital (K). SInce when IRR is les tan the cost of capital, then the NPV will autiomatically become negative, since the cost exceeds return.

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