登录之后可查看解析

This is a true statement. The net present value of Project B at a cost of capital of 12% is $19,950, calculated as follows: ($80,000 × .893) + ($70,000 × .797) + ($60,000 × .712) ? $150,000 = $19,950.
This is a true statement. The payback years for Project A are: $(100,000) + $40,000 + $50,000 = $(10,000). After 2 years, Project A still has a negative cumulative cash flow. The payback years for Project B are: $(150,000) + $80,000 + $70,000 = 0. After 2 years, Project B has paid back its investment. Therefore, the payback years for Project A is greater than the payback years for Project B.
This is a true statement. The net present value of Project A at a cost of capital of 10% is $22,720, calculated as follows: ($40,000 × .909) + ($50,000 × .826) + ($60,000 × .751) ? $100,000 = $22,720.
The internal rate of return is the most difficult of these capital budgeting methods to calculate. In order to save time, the best way to attack this question is to calculate the other three answer choices first. All of the other answer choices are true statements (see each answer choice for each calculation). Therefore, this statement must be incorrect and therefore is the correct answer to the question.