In comparing two mutually exclusive projects of equal size and equal life, which of the following statements is most correct?
A) The project with the higher NPV may not always be the project with the higher IRR.
B) The project with the higher NPV may not always be the project with the higher MIRR.
C) The project with the higher IRR may not always be the project with the higher MIRR.
D) All of the answers above are correct.
E) Answers a and c are correct.

Question

Quizplus · Accepted Answer

It is possible for a project with a higher NPV to have a lower IRR, and it is possible for a project with a higher IRR to have a lower MIRR. Therefore, both statements (a) and (c) are correct, making answer E the best choice.

In Comparing Two Mutually Exclusive Projects of Equal Size and Equal