A basic rule in capital budgeting is that If a project's NPV exceeds its IRR, then the project should be accepted.

Name: A basic rule in capital budgeting is that If a project's NPV exceeds its IRR, then the project should be accepted.
Brand: Quizplus
Rating: 4.9 (44 reviews)

Question

Quizplus · Accepted Answer

The rule is that if a project's NPV (Net Present Value) is positive, the project should be accepted. The IRR (Internal Rate of Return) is a separate measure, and the comparison between NPV and IRR is not a standard decision criterion.

A Basic Rule in Capital Budgeting Is That If a Project's