You are considering investing in a start up project at a cost of $100,000. You expect the project to return $500,000 to you in seven years. Given the risk of this project, your cost of capital is 20%. The project NPV is $39,500 and the IRR is 25.85%

Which of the following statements is FALSE?

A) The IRR investment rule states you should turn down any investment opportunity where the IRR is less than the opportunity cost of capital.

B) The IRR investment rule states that you should take any investment opportunity where the IRR exceeds the opportunity cost of capital.

C) Since the IRR rule is based upon the rate at which the NPV equals zero, like the NPV decision rule, the IRR decision rule will always identify the correct investment decisions.

D) There are situations in which multiple IRRs exist.