With non-mutually exclusive projects,

Question

Quizplus · Accepted Answer

With non-mutually exclusive projects, the net present value and internal rate of return methods may provide different rankings for different projects. However, both methods will either accept or reject the same project, making them consistent in selecting the best project. The payback method may not be effective in selecting the best project as it only considers the time it takes to recover the initial investment and not the overall profitability of the project. Furthermore, non-mutually exclusive projects may allow for the acceptance of multiple projects, therefore, B is also incorrect. C is incorrect as the decision-making process should prioritize one method over the other, depending on the circumstances of the project.

With Non-Mutually Exclusive Projects