Which of the following statement is incorrect?

When evaluating proposed projects with the IRR method, those projects with IRRs that are less than the required rate of return are rejected.

The net present value is a discounted cash flow method and a number expressed as a percentage.

Capital rationing occurs when management sets a dollar limit on new project spending.

Mutually exclusive projects are the projects that do the same task and therefore compete with each other.

Most of the answers are correct.

Which of the following statement is incorrect?

A self-liquidating loan is a loan for an asset that will generate enough return to repay the loan balance.

The stated interest rate on a loan is not always the same as the loan's effective annual interest rate.

Most of the answers are correct.

Loans for which collateral is required are called unsecured loans.

A trust receipt is a legal document in which specifically identified assets are pledged as collateral for the loan.