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The Net Present Value (NPV)method Is Preferred to the Internal

Question 34

Multiple Choice

The net present value (NPV) method is preferred to the internal rate of return (IRR) method in all of the following situations, EXCEPT for:
I.mutually exclusive projects
II.projects of different scales
III.projects with multiple cash inflows and outflows


A) I is correct, II and III are incorrect.
B) I and II are correct and III are incorrect.
C) I is incorrect, II and III are correct.
D) I, II, and III are correct.

Correct Answer:

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